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If you’re struggling with overwhelming debt from personal loans, medical bills, or credit cards, you might be wondering if bankruptcy is the next step.
But here’s the paradox: you need money to file for bankruptcy. It’s a frustrating catch-22 that leaves many wondering, “Can I file for bankruptcy with no money in Canada?”
In this blog, we’ll explore the steps you can take to file for bankruptcy even if you don’t have the funds.
We’ll cover eligibility requirements, how to get fee waivers, alternative solutions, and the step-by-step process to help you find the debt relief you need.
Whether you’re struggling with unsecured debts or facing high filing fees, there is a way forward. Let’s dive in and find out how you can take back financial control.
Key Points –Â
- How does bankruptcy in Canada work?
- Fee waivers and reduction options
- Are there alternatives to bankruptcy?
- Get debt help you can trust from Harris & Partners
How does bankruptcy in Canada work?
Filing for personal bankruptcy in Canada can be stressful, but understanding the basics makes it more manageable.
A licensed insolvency trustee will help you through the bankruptcy process so your assets are distributed fairly to your creditors. This process aims to provide you with a fresh financial start.
Eligibility criteria
To declare bankruptcy in Canada, you must owe at least $1,000 and be unable to meet your debt repayments.
Additionally, your monthly income must fall below a certain threshold, which varies depending on your household size.
Your trustee will carry out a means test to check your eligibility, this includes reviewing your:
- Income
- Expenses
- Assets’ value
Cost of bankruptcy
While it is a debt relief solutions, there are some bankruptcy fees you’ll have to think about. The average cost of bankruptcy covers things like court fees and credit counseling fees.
Filing fees generally start at around $1,800, but this can usually be paid in monthly installments.
The total cost can vary based on your specific situation and the complexity of your case. Your licensed insolvency trustee will provide a detailed breakdown of the expected expenses.
Fee waivers and reduction options
Filing for bankruptcy can be expensive, but if you qualify for this kind of debt relief, there are ways to reduce or even eliminate these costs.
If you have a low income, you might be eligible for a fee waiver, which can help cover the costs of filing for bankruptcy. Your bankruptcy trustee will guide you through the application process, giving you the best chance of approval.
To qualify for fee waivers, you’ll need to prove your money troubles.
This involves providing detailed documentation of your financial situation, including income statements and information on your expenses.
Your trustee will help you gather this documentation and submit it to the court as part of your fee waiver application.
Don’t worry if you don’t qualify for a full fee waiver; you may still have the option to pay your bankruptcy fees in installments. This can make the costs more manageable by spreading payments over several months.
You’ll need to file a request with the court, and if approved, follow your repayment plan to avoid any complications in your bankruptcy process.
Are there alternatives to bankruptcy?
Yes, there are alternatives to bankruptcy that can help with all types of debt. While it might seem like the only way out, it’s important to remember you have options.
Whether you’re struggling with credit card debts, student loans or other unsecured debts, the options below could help:
Get debt help you can trust from Harris & Partners
Are you struggling to find the right debt relief option, or are you worried you can’t pay the bankruptcy filing fees? We can help.
Our Licenced Insolvency Trustees will work with you to find the best debt solution for your specific situation.
No matter what type of debt relief you’re considering – from bankruptcy to consumer proposals, you can count on our decades of experience to guide you through every step of the process. From looking into fee waiver programs to exploring your other debt relief options, we will help you find your way back to financial security.
Contact Harris & Partners today for a free consultation and take the first step towards a brighter financial future.
