Filing of a consumer proposal
November 6th, 2009 by Questions
I am trying to put together a consumer proposal, and my Trustee is requesting I pay $900 in order to have the proposal processed with the creditors.
The only information I can find on the web is that the fee is included in the proposal amount. I can`t see why in my current situation they would make me pay a proposal start up fee when I am clearly broke?
Is it normal for the Trustee to make you pay a fee before the proposal is even submitted to the creditors?
They also said, if the proposal was refused I would be out $900.
Thanks!
Posted from: Alberta
One Response to “Filing of a consumer proposal”
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November 08, 2009 at 12:25 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
While I don’t have sufficient information to tell you whether or not this trustee is following standard practices or not, I can tell you the standard practice.
When a consumer proposal is put forward, the day the proposal is signed your must make your first payment to the trustee. Then every 30 days you must make a subsequent payment. So usually that means that 2 payments will be made prior to knowing the outcome of the voting. If you have a situation where the creditors vote against the proposal the monies are distributed in accordance with the terms of the proposal and ultimately are used to cover the costs associated with putting toghether the proposal.
From the sounds of it I would say that your the This trustee you have contacted is following this procedure, but if you are concerend about what is taking place and don’t have confidence in the person you are dealing with you may want to consider consulting with a different trustee.