Trustee fees
How do trustees charge for a consumer proposal?? Is it a percentage of the debt??
If we have equity and no cash – how do the trustee and creditors get paid??
How do trustees charge for a consumer proposal?? Is it a percentage of the debt??
If we have equity and no cash – how do the trustee and creditors get paid??
The way fees are calculated for a consumer proposal is legislated. Based on the figures you provided I have estimated the cost would come to approximately $5800.00. If you are being quoted a different amount I suggest reviewing the calculation with the trustee of contacting a different trustee for a quote (see “Find a Trustee” on the left hand of the page).
The administration fees are based on a tariff that is contained in the Bankruptcy & Insolvency Act. The tariff is dependent on how much money is offered to the creditors and can fluctuate greatly. Typically these fees are factored into the monthly payment that you make and are paid out of the total funds that are proposed. For a detailed calculation of what would be necessary for you to contribute to cover the creditors repayment and the administration fees contact a licensed trustee in your area and he will be able to detail both of these.