Fee for Consumer Proposal

September 14th, 2011 by Questions

On your examples for fees charged, you say the fees are included in the amount offered to creditors i.e. 1/3 of total debt of 75000.00 is 23,000 approx. My trusee is adding $10,000 to this for his fees for a total of 33,000. The breakdown of fees he gave me is as follows:

Filing Fee $100.00
Counseling Fees 170.00
Preparation Fee 1,500.00 (2 x $750.00)
Administration Charge 20% of the residual 6,202.58
Government – Superintendent Levy 1,200.20
Government – HST 1,023.44

Total 10,196.21

Is this right? It makes my payment 200.00 more a month. Your calculator also shows that I would only pay 350.00/month, not 550.00/month

Posted from: Ontario


One Response to “Fee for Consumer Proposal”

, A licensed trustee said:

The trustee you are dealing with is likely suggesting you repay more than you should have to. The rule is simple: you should offer the greater of (1) what you would pay if you filed bankruptcy; and (2) about 1/3 of your debt.

If you owe $75,000 then you should be offering about $25,000 INCLUSIVE of your trustee’s fee (the trustee is paid out of the $25,000 – it is not normal practice to add another $10,000 on top of that number.)

You might want to speak to some one else before you file…

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