Consumer Proposal Calculator

Consumer Proposal Calculator

How much does a consumer proposal cost?

Our consumer proposal calculator compares the potential cost of a consumer proposal compared with the cost of repayment on your own as well as other debt relief options such as a debt consolidation loan and a debt management plan.

Actual results may vary as each situation is unique. Your actual payments will be based on your income, assets and debts (to be discussed below) but this calculator provides a comparison of the potential cost of each option.

Simply enter your total unsecured debt, including credit card debt, bank loans, lines of credit, payday loans and tax debts. Do not include mortgage or secured car loans.

 

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How a consumer proposal is calculated

There are 2 components to the cost of a consumer proposal:

    1. The filing fee to the Office of the Superintendent of Bankruptcy
    2. Your monthly payments

Filing fee to the Office of the Superintendent of Bankruptcy

A filing fee is paid to the Office of the Superintendent of Bankruptcy which appoints your Licensed Insolvency Trustee as the administrator of your consumer proposal.

As of this writing, the filing fee is $104.03 and it will increase to $107.57 on March 31st 2023.

When you file a consumer proposal with Fong and Partners Inc., this is the only cost you’ll pay until your proposal has been approved by your creditors.

Monthly payments

A consumer proposal is a legal settlement under the Bankruptcy and Insolvency Act that can be paid monthly over up to 60 months.

Your Licensed Insolvency Trustee will  calculate your monthly payments based on what you can afford to pay and what would be acceptable to your creditors  which will be determined by the following factors:

    • Your assets
    • How much debt you owe
    • Your monthly net income
    • The number of dependents in your household (i.e., spouse and children)
    • Your spouse’s monthly net income
    • Whether your not you’ve previously file for personal bankruptcy

How does a Trustee get paid?

A Licensed Insolvency Trustee’s fees are paid out of the proposal fund (i.e., the accumulation your monthly payments in his trust account) in accordance with a tariff under the Bankruptcy and Insolvency Act. Specifically, your Trustee pays out from his trust account:

    1. The $104.03 OSB filing fee described above
    2. $750.00 plus sales taxes upon the filing of your consumer proposal
    3. $750.00 plus sales taxes after your consumer proposal has been approved by your creditors
    4. $170.00 plus sales taxes for two mandatory financial counselling sessions
    5. 20 percent of funds distributed from his trust account plus sales taxes

In other words, you do not pay a separate fee for a Trustee’s services – your proposal payments include the Trustee’s fees as well as the settlement payment to your creditors.

To illustrate the costs of a consumer proposal, here’s a breakdown of the costs and distributions associated with a proposal offering offering payments totaling $18,000.00:

Proposal fund 18,000.00
OSB filing fee 104.03
Trustee fee - filing of proposal 750.00
Trustee fee - creditor approval of proposal 750.00
Counselling fees 170,00
HST on Trustee and counselling fees @ 13% 217.10 1,991.13
Available for distribution: 16,008.87
Trustee fees on distribution @ 20% 3,201.77
HST on Trustee fees 416.23 3,618.00
Net amount available for distribution 12,390.87

Want to work with us? Our promise to you…

  • You will be in constant contact with a real Licensed Insolvency Trustee.
  • Your calls will always be returned.
  • Your emails will never be ignored.
  • We will work with you to craft an affordable payment plan that makes sense for your budget.

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