Trustee Fees in consumer proposal
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
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.