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Is it legal for a Trustee to Charge me 3 months payments of my monthly payments abouve what is set out in the agreement?

I read in you “Consumer Proposal” information section that if someone files a proposal and is paying, for argument’s sake, $300/month for 36 months then the Trustee is paid out of that proceedings. I filed a CP in September of 2010 and it didn’t actually start until December of 2010 because my Trustee took the first three payments and for himself and then start the 36 months in December. I am paying $450 a month and I had to give him the first one $456 in cash and then a two cheques October and November and then a void cheque for the payments over the life of the Proposal. Is that Legal? I am just concerned since you said that the Trustee is usually paid from the monies set aside i.e. in my case from the $450 monthly payments over the 36 months.

Posted from: Ontario

One Response to “Is it legal for a Trustee to Charge me 3 months payments of my monthly payments abouve what is set out in the agreement?”

A licensed trustee said...

What you are describing sounds exactly like what the debt consultants do – charge you a fee and then let you file your proposal. I suggest you contact the nearest Office of the Superintendent of Bankruptcy to discuss your concerns. What you are decribing does not sound right…