How can I file bankruptcy with no money?

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Navigating bankruptcy in Canada doesn’t have to empty your wallet. Connect with a Licensed Insolvency Trustee (LIT) to review your finances. Filing typically costs around $1,800, but some trustees offer reduced fees or payment plans, especially when referred by the Office of the Superintendent of Bankruptcy. If your income is zero, discuss it with your LIT, who may negotiate fees. Not all trustees can be trusted. GST/HST credits might also help ease the load. Reach out via phone, text, or live chat if you have questions.

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File Bankruptcy No Money Question

How can I file bankruptcy with no money? What can I do if I need to file for bankruptcy but don’t have any money to cover the costs?

From: Anonymous Question
Location: St Johns, Newfoundland Labrador (NL)
Category: personal bankruptcy

File Bankruptcy No Money Answer

If you’re looking to navigate filing for bankruptcy in Canada without breaking the bank, here’s the scoop: Connect with a Licensed Insolvency Trustee. They’ll take a thorough look at your financial situation and give you the lowdown on your options. While the standard cost for filing hovers around $1,800, some trustees are kind enough to offer reduced fees or flexible payment plans, especially if you’re going through the Office of the Superintendent of Bankruptcy’s referral program. If your income is, let’s say, non-existent, be upfront with your LIT. They can sometimes negotiate fees based on your specific case. Oh, and if you’re getting GST/HST credits, these might just help lighten the financial load a bit.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

If you need to file for bankruptcy but don’t have any money to cover the costs, you can explore a few options:

1. Filing Fee Waivers: Under the Bankruptcy and Insolvency Act (BIA), some individuals may qualify for a fee waiver. Specifically, the financial situation of the applicant is assessed based on their income and expenses. Refer to the BIA, Section 10.2 for the provisions on exemptions.

2. Payment Plans: You may be able to negotiate a payment arrangement with a Licensed Insolvency Trustee. This allows you to spread the costs over time instead of paying them upfront. Check the BIA, Section 2 for details on the role and responsibilities of an LIT.

3. Creditor’s Consent: It might be possible to seek some leniency from your creditors. They may agree not to seek payment of the fees or costs associated with the bankruptcy if they see you are earning little to no income.

4. Community Resources: Various community organizations may provide financial assistance or advice on how to manage bankruptcy costs.

5. Consider Alternatives: If bankruptcy is unaffordable, consider if a consumer proposal (which typically has lower fees compared to bankruptcy) or non-insolvency debt management options may be available.

If you pursue bankruptcy despite financial constraints, ensure to consult with a licensed trustee for tailored advice and support in your situation, as they are the best resource for navigating these complex processes.

From: OSB Helper

Related Questions to How You File Bankruptcy With No Money

Here are the top 5 most frequently asked questions related to filing bankruptcy with no money, based on common concerns and trends in the context of Canadian debt and insolvency laws:

1. How can I afford the cost of bankruptcy if I have no money?

You may use GST/HST credits to cover part of the cost, or consider the Bankruptcy Referral Program for assistance[1][3].

2. Can I file for bankruptcy if I have no income?

Yes, you can file for bankruptcy even with no income, but you may need to explore alternatives like a consumer proposal if you are not working[1][3].

3. What happens to my debts if I file for bankruptcy with no assets?

Your unsecured debts will be written off once you are discharged from bankruptcy, even if you have no assets to distribute to creditors[1][3].

4. Do I need to pay any fees or contributions if I file for bankruptcy with no income or assets?

You may not need to make surplus income payments if your income is below the threshold, but there will still be a base administration cost for the bankruptcy[1][3].

5. Is a consumer proposal a better option than bankruptcy if I have no money?

A consumer proposal might be more suitable if you are not working, as it allows for a payment plan based on your future income[1][3][4].

If you have a question about debt see our debt questions or ask your own debt related question.

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