How are fees paid in a consumer proposal?

how are fees paid in a consumer proposalHow are fees paid in a consumer proposal? This will depend on the total amount of the proposal payments. However, it is important to note that the Licensed Insolvency Trustee‘s fees are actually paid by the creditors.

During the course of the consumer proposal, you’ll be making monthly payments to your trustee, who will deposit these funds into her trust account for the benefit of your creditors. The trustee’s fees are paid out of the trust fund in accordance with a tariff under the Bankruptcy and Insolvency. So in other words, they are paid by your creditors out of their trust funds.

How is this tariff calculated? According to the Rules under the Bankruptcy & Insolvency Act the Licensed Insolvency Trustee can draw the following fees from the trust account:

  • $750.00 plus sales taxes upon filing the consumer proposal;
  • $750.00 plus sales taxes upon the approval of the consumer proposal by the creditors and the Court;
  • $85.00 plus sales taxes for each of the two counselling sessions the debtor must attend at the Licensed Insolvency Trustee’s office; and
  • 20 percent of the funds distributed to the creditors under the proposal, plus sales taxes.
How long does my consumer proposal last? »