Disbursement to creditors

June 1st, 2012 by Questions

Can anyone explain how funds paid for a consumer proposal are disbursed to creditors? My trustee gave me a dividend sheet which shows a “dividend” and a “levy” and I would like to know what these are. Hope to get an answer soon.

Posted from: Ontario


One Response to “Disbursement to creditors”

, A licensed trustee said:

You know, you should have just called your trustee and asked them – after all they are being paid to assist you…

When your trustee makes a payment to your creditors it is called a dividend. The government charges a fee called a levy of 5% on each of these payments. The levy pays for the government agency that oversees the process.

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