All fees in a Consumer Proposal are set by government tariff. These fees cover all Consumer Proposal costs, including the government fee to file your Consumer Proposal, all professional fees and disbursements as well as counselling costs.
These fees are deducted from the funds the creditors receive and there is no additional cost to the person above what they are offering to their creditors in the Consumer Proposal.
Most people will just make a first monthly proposal payment at the time they sign their official Consumer Proposal documents – no extra payments are required to start a Consumer Proposal.
For example, if your Consumer Proposal to settle debts of $40,000 offers your creditors a total of $12,600, payable at $350 per month for 36 months. You would pay:
- Your first payment of $350 at the time you sign and file the official Consumer Proposal documents;
- $350 per month, for 35 months.
…that’s it! With a Consumer Proposal, all you pay is what you are offering to the creditors. All costs of administration are paid by the creditors – there is never a bill or invoice from the Trustee.
At the end of your Consumer Proposal you will receive a final accounting called a Statement of Receipts and Disbursements. This official document helps to provide full transparency and will detail all payments made through the Consumer Proposal and show a clear breakdown of the legal tariffs that were used to determine the Trustee’s fees and the government’s levy (charge). The Statement of Receipts and Disbursements will also detail the creditors that received debt settlement payments (called dividends) through the Consumer Proposal, and exactly how much each creditor received.
Consultations to discuss your situation and evaluate all your possible debt options are always free, and no referral is required to meet with a Licensed Insolvency Trustee.