If you’re looking to break free of personal debt once and for all, we can help. We provide debt and bankruptcy solutions that are life-changing and permanent, so you can erase debt from your life.
Our Life-Changing Debt Solutions are designed to permanently get you out of debt once and for all – so you can stop worrying and start living again.
Debt can be overwhelming. For that reason, our Licensed Insolvency Trustees are always here for you. let’s discuss the options available to you. Your debt-free future starts now.
Filing for bankruptcy offers you a fresh financial start, but there are still some costs involved. What you’ll pay varies based on your individual situation. Your MNP Licensed Insolvency Trustee will help set up a payment plan that works for you, as part of your Life-Changing Debt Solution.
Once you’ve filed for bankruptcy and your creditors are notified, your Licensed Insolvency Trustee will give you forms to fill out each month. You’ll use these forms to document your income and expenses. The government has set income thresholds that allow for a reasonable standard of living. A portion of any earnings over that threshold will be paid as part of what’s known as a ‘surplus income payment’.
In a bankruptcy, payments and fees received by your Licensed Insolvency Trustee may include:
Upon filing for bankruptcy your creditors will be notified and your Licensed Insolvency Trustee will have you fill out some paperwork – this will be used to document your income, expenses, assets and debts.
The government has set income thresholds which allow for a bankrupt individual to repay their creditors while still maintaining a reasonable standard of living – income over these thresholds is called Surplus Income and you pay a percentage of that into the bankruptcy. Based upon the income, expenses and assets you disclose, you will fall into one of two categories, with the fee structure being different for each:
If you fall above the prescribed threshold, you will be classified as higher income bankrupt. In this case you will be required to turn over half of any surplus income to your trustee for payment to your creditors. The trustee will collect their fees from this surplus income, the sale of your assets or a combination thereof. There would be no additional payments required from you.
If you fall below the prescribed threshold, however, you will be classified as lower income bankrupt. In this case you will not have any surplus income or assets to sell off. Therefore, you will be required to pay an amount towards the trustee’s fees – which vary depending on the situation – directly. Considering your situation, MNP will often allow you to pay these fees over time. We can apply tax credits (such as GST refunds) to make this process more manageable.
Bankruptcy fees are federally legislated and vary depending on the situation.
If you have surplus income or assets that can be turned over to your trustee, you will not absorb any upfront costs when you file for bankruptcy.
If you do not have surplus income or assets, you will need to negotiate a fee arrangement with your trustee. On average, this works out to approximately $200 per month or $2,000 in total. However, your trustee will tailor your fee arrangements to your unique personal situation.
The process of filing for bankruptcy is intended to help you wipe your slate clean with a financial fresh start. With that said, there will be some immediate impacts to your credit score which you should be aware of. These will affect your ability to borrow money for the first few years after your claim.
From the date your bankruptcy is discharged (usually nine months for a first time bankruptcy, and up to 36 months for second or subsequent bankruptcy), your bankruptcy will remain on your credit bureau report for a period of six years. This sounds like a long time, but although the claim will be known to creditors, you will not be classified as bankrupt during that time. That means you can still work on rebuilding your credit – taking the final step to erasing the last remaining traces of your past debt situation once and for all. There are things you can do both during and after your bankruptcy to improve your credit rating and we will discuss those with your during the two required counselling sessions.
To learn more about bankruptcy and whether this is the right option for you, contact your nearest MNP office at 310-Debt to discuss your situation, either in person or over the phone.
Our team of Licensed Insolvency Trustees will help you
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*310-DEBT doesn’t operate in MB, NW ON and QC.
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