How Much Does it Cost to File a Consumer Proposal?

A Consumer Proposal allows you to consolidate and cut your debt by up to 80%, without added fees or interest. You need to work with a Licensed Insolvency Trustee to file a Consumer Proposal and there is no added cost to you for the administration of your Consumer Proposal, and support from your Licensed Insolvency Trustee throughout the Consumer Proposal process. Read on to learn more about Consumer Proposal costs and payments.

What Will it Cost Me to File a Consumer Proposal?

The fees of the Licensed Insolvency Trustee who files your Consumer Proposal are set by federal law and government tariff, and these fees include all the costs for completing the administration of your Consumer Proposal – start to finish.

• Because Licensed Insolvency Trustee’s fees are set by tariff, you will not be billed or invoiced – these fees are simply paid out of the money your creditors receive under the Consumer Proposal, and no additional cost is paid by you as the person who is making the Consumer Proposal.
• There is no interest charged on the debt consolidated in your Consumer Proposal.

How Do Monthly Consumer Proposal Payments Work?

The Consumer Proposal amount offered to your creditors will be based on several factors, including your income and overall debt, and you will make your monthly payments directly to your Licensed Insolvency Trustee.

• Your Licensed Insolvency Trustee will deal with your creditors on your behalf, and will periodically distribute payments to your creditors, in accordance with your specific Consumer Proposal terms.

For example: Your Consumer Proposal to settle total consolidated debts of $35,000 offers to repay a total of $10,800 to your creditors, which you will pay by monthly payments of $300 for 36 months. You would then pay:

• $300 within 30 days of signing and filing your official Consumer Proposal
  • No payments are required in advance of the filing – there are zero upfront fees
• $300 per month, for the remaining 35 months of your Proposal

In the scenario above, you would only have to repay around 30% of your total debt to have it considered settled in full, and interest charges and penalties from your creditors will immediately stop upon filing your Consumer Proposal.

Transparency in the Consumer Proposal Process 

At the end of your Consumer Proposal, you and the creditors included in your Consumer Proposal will receive a final accounting document 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.

Find out how a Consumer Proposal could work for you, book your free confidential debt consultation with Sands & Associates today. We have a network of local BC offices to serve you online and in-person.