June 3rd, 2012 by Questions
what percent do trustee keep on a cp.and are my payments to trustee distributed to creditors monthy or yearly?
Posted from: Ontario
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June 03, 2012 at 1:01 pm, A licensed trustee said:
Trustees fees are set out by law for consumer proposals.
Trustees are paid a preparation fee of $1,500 plus HST and then 20% of any disbursements to your creditors when the creditors are paid.
Payments to creditors are made at different times, depending on the terms of the proposal. For example, in our firm, we currently distribute funds to the creditors every 6 months. Once we are able to make electronic payments to the creditors that frequency will probably increase. I know of firms that only distribute funds once a year (every December), and others that set different terms depending on how big your monthly payments are.