What Will Bankruptcy Cost?
A Licensed Insolvency Trustee obtains fees directly from the funds in a bankrupt estate in priority to other claims. The Trustee is only allowed to take fees at certain specified times and the fees are either reviewed and approved by the Courts or based on a tariff laid down in the Bankruptcy & Insolvency Act.
The cost to to a debtor of a personal bankruptcy is approximately $1,600 for a Summary (smaller) Administration. The fee will be covered by:
- Income Tax Refunds
- By sale of non-exempt assets before or during bankruptcy.
- and/or Surplus Income
This entire area of fees is of as much concern to the Trustee as to you. It is important to obtain a clear understanding of what has been agreed, prior to any assignment in bankruptcy.
Refund Of Fees
When you chose Bromwich & Smith, if you do overpay your surplus income, or make payments on an agreed fee and we recover money from tax refunds or other assets, it is our policy to refund the excess payments you have made to you.