November 30th, 2008 by Questions
What are the fee rates for trustees for managing a Consumer Proposal in Ontario?
Posted from: Ontario
One Response to “T. Beach”
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December 01, 2008 at 8:21 am, A licensed trustee said:
The rates trustees are paid to administer a consumer proposal are set out in the Bankruptcy and Insolvency Act as follows: $1500 fee to prepare the proposal and 20% of all distributions to creditors. There are some other administrative costs that they are allowed to re-coop, but the two items I’ve listed are the only fees a trustee is allowed.
In most cases, these fees are dealt with as part of your regular payments towards the proposal. For example, if you are to pay $300 for 48 months into your proposal, your trustee will receive the first 5 monthly payments as their preparation fee (the $1500) and then every six months your trustee will send payments (called dividends) to your creditors. 20% of whatever the creditors receive will also be paid to the trustee as a fee.
If someone is asking you for additional payments or fees BEFORE you file you should contact the Office of the Superintendent of Bankruptcy to discuss their conduct.
Also be very careful not to get caught by some debt consultant – these folks charge a fee (often quite high) and then refer you to a trustee. Don’t pay some one else for something that you can get for free by simply calling a trustee directly….