The minimum fee Taylor Leibow typically charges for a first-time bankruptcy is $1,800 payable in 9 monthly payments of $200.00 each.  In addition, your income tax refunds and quarterly GST credits will be forwarded directly to the trustee by Canada Revenue Agency for a specified time period.  The actual amount that a trustee can draw as fees for a summary administration is set by tariff under the Bankruptcy and Insolvency Act and is thus standard across all trustees.  The minimum fee that a trustee charges may fluctuate slightly from the above depending on your locality and the company.

The following factors may result in a higher payment to your trustee:

  • You have been bankrupt previously and are filing bankruptcy for a second or third time
  • You do not complete all your statutory duties, and the trustee opposes your discharge. Most trustees will charge an additional fee if they are required to file an opposition and attend a court discharge hearing.
  • You are required to make surplus income payments. The Superintendent of Bankruptcy has issued a directive as to what they feel is necessary to cover your reasonable living expenses based on your family size.  If your income exceeds this threshold, you will be obligated to make surplus income payments to the trustee.  Please see my blog, “What are Surplus Income Payments in a Bankruptcy?” for further details.
  • You have a realizable asset that you want to retain and thus make an offer to purchase the asset back from the trustee. For example, you can make an offer to “buy back” a Registered Education Savings Plan that you have contributed to for your children to enable you to keep the asset.

Do not let the cost of a bankruptcy deter you from reaching out to Taylor Leibow Inc. for a free, initial assessment of your financial situation and possible solutions.  We will do our best to try and assist you to obtain a fresh start.

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)