How to Use This Calculator
Use this calculator to see exactly what bankruptcy will cost you and whether it makes financial sense for your situation.
Enter Your Income Information
Start by entering your monthly family net income and select your family size. The calculator uses official Ontario bankruptcy thresholds set by the government. If your income exceeds the threshold for your family size, you'll be required to pay 50% of that surplus amount every month throughout your bankruptcy. For example, if the threshold for your family is $3,318 and you earn $4,000, your surplus is $682, meaning you'll pay $341 per month in surplus income payments.
Select Bankruptcy Type
Choose whether this is your first or second bankruptcy, as this dramatically affects the duration and total cost. A first bankruptcy lasts 9 months unless your surplus income exceeds $100 per month, which extends it to 21 months. A second bankruptcy lasts 24 months minimum, or 36 months if you have surplus income over $100 monthly. This means a second bankruptcy can cost significantly more due to the extended payment period.
Enter Your Total Debt
Add the total amount of debt you owe. This allows the calculator to compare your bankruptcy costs against what you actually owe.
List Your Assets
Enter the value of all your assets including vehicles, home equity, collections, furnishings, investments, and bank accounts. The calculator automatically applies Ontario's provincial exemptions. You keep the first $7,117 of vehicle equity, $10,783 of home equity, and $14,180 of household furnishings. Everything above these amounts gets seized and sold to pay creditors. RRSP and RRIF accounts are also protected, except for contributions made in the last 12 months which are seizable. Collections, non-registered investments, and bank accounts have no exemptions and are fully seized.
Understanding Your Results
Click the calculate button and the results will show you the base trustee fee of $2,250, your total surplus income payments over the bankruptcy period, and the total value of assets that will be seized. These three amounts add up to your total bankruptcy cost. The calculator then compares this total cost against your debt to show whether bankruptcy saves you money or actually costs more than what you owe. If the total cost exceeds your debt, you may want to explore alternative debt relief options that could be more beneficial for your situation. If bankruptcy does provide savings, keep in mind that it remains on your credit report for six years in Ontario.
