Trustee Fees in consumer proposal

April 5th, 2011 by Questions

Consumer proposal made to hold paying total of $20,000 to creditors for about six months until home sold — then I would pay creditors back in full. Was paying $250 a month to Trustee for this period of six months. House now sold — I want to give the Trustee the $20,000 I owe but he wants an extra $6,000 he calls a ‘tariff’. What is that? Does the Trustee get 30% ($6000) of what was owed or should it be 7.5% as stated in the act? (7.5% would be $1500).

Posted from: British Columbia


One Response to “Trustee Fees in consumer proposal”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

The administration fees for a consumer proposals are indeed set by a tarrif that is contained in the Bankruptcy and Insolvency Act. The formula for this tarrif is essentially two one time draws of $750.00, 20% of what goes out to creditors, a $100 administrative disbursement and the costs of the counselling sessions. So from the sounds of it your trustee is doing what he is supposed to.

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