CP fees


I have conusluted with a Licensed Insolvency Trustee about doing a CP and we have determined my monthly payment to be $200. He has asked me to open a new checking account at a bank that I do not have a credit card with.

He has also asked me to bring $300 cash and two post dated cheques from the new checking account each $150 saying that this $600 will go towards my first 3 payments.

I was wondering if this is the normal procedure or not as my understanding was there will be no fees for the CP.

Thank you in advance for your clarification.

Posted from: Ontario

One Response to “CP fees”

A licensed trustee said...

Hmmmm – since these payments are being applied directly to your proposal payments they should be ok. Frankly, it is a bit unusual for a trustee to ask you to pre-pay your proposal payments. It suggests to me that they may not file a lot proposals – either that, or they’ve had a lot of proposals fail and they are afraid they won’t get paid…

If they were asking for upfront fees that weren’t going to be applied to your payments I’d tell you to head for the door…

If you are not sure they are a trustee, ask for their federal licence number and then go to the Office of the Superintendent of Bankruptcy’s website and look them up.