How does the Trustee get paid in a Consumer Proposal?

by Joel Sandwith on October 8, 2013

Well, first, let’s clarify – only a licenced Trustee in Bankruptcy can help you file a consumer proposal (that’s me, see below for ways to reach me).  When a consumer proposal is filed, the Trustee becomes the Administrator of the proposal, working with you, and your creditors to find a common ground between you and a payment plan you can afford.

In many cases, consumer proposals can save enormous amounts of money.  I filed a consumer proposal recently for a couple who had over $150,000 in credit card and other unsecured debt – the proposal ended up being accepted for $1000 per month for 60 months, an overall savings of more than $90,000, and no interest, including all fees!  I also recently filed a proposal for an individual who had about $15,500 in debt, for a total of $150 per month for 48 months, including all fees, a savings of more than $8,000.

In both cases, the fee structure is and was dictated by Federal law, the Bankrutpcy and Insolvency Act.  The Act provides that all proposals, across the county, no matter the size, have the same fee structure – and to be clear,  the fees come out of the payments, NOT on top of the payments.  So, whether you file the proposal in Nova Scotia or Ontario, with me or with a another trustee, for $10,000 or $100,000, the fee structure is the same.

Most importantly, with me there are no up front fees, and I will make sure to explain not only the fees, but the whole process to you so that you know where your money is going, and why.

Got debt? Give us a call, either toll free at 866-747-0660, or 310-PLAN (7526 no area code required) or locally in Sarnia at 519-344-1058.

 

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