What Does it Cost to File for Bankruptcy in Ontario?

Costs Of Going Bankrupt in Ontario

Receiving threatening calls and letters, facing lawsuits, and being unable to pay your mounting debts can all be extremely stressful.

Financial companies don’t tend to pull any punches when they are going after people who owe them money, and this leaves a lot of people losing sleep when they can’t stop thinking about their money.

Filing for bankruptcy can often be a good solution to this problem, offering protection and a way to pay off your debt which won’t leave you unable to survive.

Like any financial service, though, filing for bankruptcy always comes with some costs.

This could be less than what you’re currently struggling to pay, but you need to assess this against your finances.

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The Basic Costs

There are a range of basic costs which come with bankruptcy, and you will have to pay these no matter how much you owe or the amount of money you’re earning.

In Ontario, you will need to cover things like court fees, government filing fees, and other fees which come with the process.

This will usually set you back a minimum of $200 each month.

The Bankruptcy & Insolvency Act

Alongside your basic costs, you will also be required to pay additional fees which are based on your income.

This is the money which will be used to pay back your debt, making it crucial that it is calculated correctly and that you work hard to meet the requirements.

The Bankruptcy & Insolvency Act requires that you pay 50% of your net income to your trustee over a set period.

Alongside taking a chunk of your income, this Act will also mean that you will have forfeit your valuable assets, though there are some protections in place in this area.


  • You can keep unlimited clothing when you file for bankruptcy, though it may look bad if you have expensive clothing which you’re not willing to sell;
  • You are allowed to keep up to $6,600 worth of vehicles, and this can be split between more than one;
  • Your home can be equipped with up to $13,150 worth of furnishings and appliances;
  • Your job is protected, and you can keep up to $11,300 worth of equipment which is used for your job;
  • Pensions funds are protected, though any contributions which have been made within the last year may be forfeit;
  • Some life insurance policies are protected when you file for bankruptcy.


Any assets which don’t fall within these boundaries could be taken to cover some of the debt you owe.

You can often come to arrangements which don’t require this, but we’ll explore this more later on.

What Happens To Tax Refunds and Windfalls?

Filing for bankruptcy means that you may not be eligible for certain tax refunds.

This can be the case when people have paid more tax than they were supposed to, and this means that it has the potential to cost quite a lot.

Alongside losing tax refunds, filing for bankruptcy will mean that you have to forfeit any windfalls you get during this process.

This can include things like inheritance money and lottery winnings.

You have to make your trustee aware of windfalls as soon as you know they are coming, and they will work to factor them into your recovery plan.

Debts You Are Still Liable For

Certain types of debt will still need to be paid when you file for bankruptcy.

This includes secured loans, alimony payments, student loans, and child support, along with a range of other types of debt.

You have to factor this into your plan, as these payments will need to be made alongside everything else.

How Bankruptcy Canada Can Help To Reduce Your Monthly Payments

Going bankrupt isn’t always the only option when you’re struggling to pay your debt.

A consumer proposal acts as an excellent alternative to bankruptcy, acting as an offer which you make to your creditors to pay back what you owe.

This will usually be based on the minimum cost of bankruptcy, but you will be able to spread it over a longer period, making it far more manageable.

Bankruptcy Canada offers confidential and obligation free advice to anyone considering the idea of filing for bankruptcy.

We can help you if you decide to go through this process, but can also work with you to create a successful consumer proposal.

You can get in touch with our expert team by calling at 1-877-879-4770.

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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