How to file for bankruptcy with no money?

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Considering bankruptcy in Canada but short on funds? Your go-to should be a Licensed Insolvency Trustee, who can guide you through the process even if you’re low on cash. Bankruptcy costs start around $1,800, but the Bankruptcy Assistance Program can help reduce fees based on your affordability. If costs are still tough, consider a Consumer Proposal instead. Not all trustees can be trusted. Got questions? Reach out via phone, text, or chat!

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Bankruptcy No Money Question

How to file for bankruptcy with no money? I need advice on what to do if I can’t afford the costs associated with filing for bankruptcy. What are my options?

From: Anonymous Question
Location: St Catharines, Ontario (ON)
Category: personal bankruptcy

Bankruptcy No Money Answer

If you’re considering filing for bankruptcy in Canada but don’t have the funds to do so, your first step is to reach out to a Licensed Insolvency Trustee. They’re like your financial guide, helping you navigate through the whole process and take care of the boring paperwork. Even if you’re low on cash or don’t own much, you can still proceed with bankruptcy, as long as you clearly show your financial situation. If you’re what’s known as “judgment proof,” this could mean you get a quick break from those pesky creditors.

Now, about the costs—yeah, filing isn’t cheap, starting at around $1,800. But don’t panic just yet! Check out the Bankruptcy Assistance Program; it’s like a helping hand that cuts down those fees based on what you can actually afford. If you have zero income, you might need to find a way to cover the fees upfront, but things like GST/HST credits could lend a hand.

Can’t swing the costs? No worries! A Consumer Proposal might be your saving grace. It’s more like a deal where you pay back part of your debts over time, which can feel less like running a financial marathon if you’ve got some earnings. Also, don’t hesitate to give the Office of the Superintendent of Bankruptcy a buzz. They might have some tips and tricks up their sleeve, especially if you’re finding it tough to stay afloat.

Finally, be choosy about which LIT you team up with—not all are as trusty as you’d hope. Got questions? Don’t be a stranger—reach out by phone, text, or even a quick live chat sesh!

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

If you cannot afford the costs associated with filing for bankruptcy in Canada, you have a few options:

1. Legal Aid: Check if you qualify for legal aid services in your province or territory. They may provide assistance or representation if you are unable to afford legal fees.

2. Payment Plans with a Trustee: Some bankruptcy trustees may allow you to pay their fees in installments rather than upfront. Contact a licensed insolvency trustee to discuss this option.

3. Duty to Notify the Court: If you encounter financial hardship, you may notify the court about your inability to pay the filing fees. Under the Bankruptcy and Insolvency Act, courts might consider waiving fees based on your financial situation.

4. Filing without Legal Representation: You may choose to file for bankruptcy on your own without legal assistance. All required forms are accessible online through the Office of the Superintendent of Bankruptcy Canada.

5. Consumer Proposal: Consider a consumer proposal, which might have lower costs associated with it compared to personal bankruptcy, and the fees can often be included in the negotiation.

Review the Bankruptcy and Insolvency Act (RSC 1985, c B-3) and related regulations for more specifics on the procedures and provisions relating to your situation.

From: OSB Helper

Related Questions to How To File For Bankruptcy With No Money

Here are the top 5 most frequently asked questions related to filing for bankruptcy with no money, based on common concerns and trends:

1. How much does it cost to file for bankruptcy if I have no money?

• The minimum cost to file for bankruptcy is $2,250, payable in 9 monthly installments of $250, but options like the Bankruptcy Referral Program can help if you cannot afford this upfront[1][4][5].

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 pay the costs upfront or use programs like the Bankruptcy Referral Program for assistance[4].

3. What are the trustee fees for bankruptcy if I have no assets?

• Trustee fees are calculated based on the assets realized, with fees of 100% on the first $975, 35% on the next $2,000, and 50% on amounts over $2,000, but these fees are typically paid from the assets, not by you directly if there are no assets[1][2][5].

4. Are there any programs or assistance for filing bankruptcy with no money?

• Yes, the Bankruptcy Referral Program can provide access to bankruptcy even if you cannot afford the cost, and GST/HST credits may also help cover some of the expenses[4].

5. Can I file a consumer proposal instead of bankruptcy if I have no money?

• A consumer proposal is an option if you can afford to repay a portion of your debts, but it requires approval from your creditors and may not be feasible if you have very limited income or assets[3].

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

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