Consumer Proposal Trustee Fees: How are they paid?

When meeting with someone to discuss filing a consumer proposal, a common question is: How do you get paid? The answer is simple, the consumer proposal administrator fees are paid out of the consumer proposal.

The government sets rules on how much trustee’s can get paid. The trustee is paid $1,500 + 20% of the money paid to the creditors. This amount is set by legislation and can’t be increased. It doesn’t matter which trustee helps you, the fee will be the same.

For example, if you are making a proposal of $300 per month for 48 months, that is all you pay.

There are no hidden charges or up-front fees to file a consumer proposal. If you are meeting with someone and they require money just to meet with you, it’s best to call someone else. If they ask for money upfront, it’s best to call someone else.

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4 thoughts on “Consumer Proposal Trustee Fees: How are they paid?

  • Carol Bower

    Many Trustees in Vancouver require between $700-800 dollars to file a consumer proposal, so I am confused re: no upfront fees.

    • J. Douglas Hoyes

      Licensed Insolvency Trustees are not permitted to charge upfront fees. There are two explanations for what you are describing:

      First, it is possible that you are not dealing with a Licensed Insolvency Trustee. You may be dealing with a debt consultant who is charging you a fee, and then referring you to an LIT.

      Second, it is possible that the LIT requires you to make the first months payment on filing. So, for example, if the proposal is for $700 per month, they may require you to make the first $700 payment upon filing. It’s not an upfront fee; it’s a fee upon filing to cover their mailing costs and the filing fee they pay to the government.

      What you are describing is an unusual practice in most areas of the country; I cannot comment on whether or not it is a common practice in Vancouver.

      I would suggest you discuss this in detail with the trustee before you file, to confirm that you are not paying an upfront fee.

  • Jenn

    I was speaking with a company who quoted me just over $300 a month for my consumer proposal, but also said it will cost me $900 a month for the first 3 months.

    Is this normal? I can’t afford $900 x 3 months=$2700

    • Ted Michalos

      It is not normal in any of the areas that we operate. Are you actually dealing with the licenced insolvency trustee (LIT), or are you dealing with a debt consultant that is charging you a fee of $2,700 before they refer your file to a LIT? I suspect you are being charged a fee that you don’t really have to pay. Google LIT’s in your area and call one directly and see what they say…


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