COST OF A CONSUMER PROPOSAL
December 15th, 2009 by Questions
MY TRUSTEE IS MAKING A CONSUMER PROPOSAL TO MY 5 CREDITORS. THE OFFER IS 60 CENTS ON THE DOLLAR WHICH WILL BE AROUND $21,000 IF EXCEPTED. THE TRUSTEE HAS ASK ME FOR $2,500 TO WRITE UP THE PROPOSAL. IS $2,500 A FARE PRICE TO PAY FOR A PROPOSAL.
Posted from: Ontario
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December 16, 2009 at 9:19 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
In a consumer proposal the trustee’s fees are set by the legislation. So it is likely that this initial payment is simply a deposit and is not entirely reflective of what the fees will be.
In terms of whether a deposit of this size is normal, that really depends on the situation. Very rarely do I take a deposit like this up front, typically I simply have people make their first payment when they sign up, but this can change depedning on the nature of yoru siutation. If you don’t think this is a reasonable approace you may want to contact a different trustee, briefly explain your situaiton and see if they would require as large of an initial payment given your situation.