A Consumer Proposal can only be filed and managed by a Licensed Insolvency Trustee . For the proposal to be legally binding, the creditors who are owed the majority of your debt must agree to the arrangement.
What is the cost of filing a consumer proposal?
You’ll pay an initial filing fee of $104.03, and if it’s accepted by your creditors, you’ll pay the settlement over up to 60 months. The amount of debt that you repay is based on your income and what assets you own.
Payments are made to your Trustee which deposits them into a trust account. The Trustee’s fees get paid by your creditors out of the trust account according to a tariff. This tariff is $1,500 plus 20% of the amount the Trustee distributes to your creditors every year.
ARVE Error: src mismatch
src in org: https://www.youtube-nocookie.com/embed/pJtLwQx6hQE?wmode=transparent&rel=0&feature=oembed
src in mod: https://www.youtube-nocookie.com/embed/pJtLwQx6hQE?wmode=transparent&rel=0
src gen org: https://www.youtube-nocookie.com/embed/pJtLwQx6hQE
The Pros and Cons of Filing a A Consumer Proposal
It can significantly reduce the amount of debt you need to repay to your creditors and there is no interest during repayment
It will cost more than a bankruptcy, which is to be expected if you want to avoid being forced into bankruptcy
You can avoid bankruptcy which can be an advantage if you have assets
It doesn’t affect student loans if you attended school in the preceding 7 years
Avoid Getting Ripped Off When You File a Consumer Proposal
A growing number of for-profit debt consulting companies and their sales people have started marketing consumer proposals as an easy way to get out of debt.
But the problem is that only a Licensed Insolvency Trustee can file and manage a consumer proposal. Debt consultants have charged thousands of dollars in fees to vulnerable, unsuspecting consumers only to refer them to a Trustee which already gets paid by their creditors from proposal payments.
ARVE Error: src mismatch
src in org: https://www.youtube-nocookie.com/embed/4OXIuyZO-pk?wmode=transparent&rel=0&feature=oembed
src in mod: https://www.youtube-nocookie.com/embed/4OXIuyZO-pk?wmode=transparent&rel=0
src gen org: https://www.youtube-nocookie.com/embed/4OXIuyZO-pk
Debtors served by LITs who had ongoing relationships with debt consultants usually ended up paying thousands of dollars more for the administration of their insolvency than debtors who were not sourced through a debt consultant.
Typically, debt consultants required a consumer debtor to sign a fee agreement for consulting services prior to being introduced to a “selected LIT.”
Debtors typically understood the role of the LIT as being limited to meeting with the debtor to “file” the proposal developed by the debt consultant.
You should avoid dealing with Trustees which participate in these types of business relationships with debt consultants.
Please visit our Consumer Proposal FAQs page where we answer the most common questions about consumer proposals.
Bankruptcy Mississauga – A Complete Guide
Filing for personal bankruptcy is something to consider if you are unable to solve your problems with a consumer proposal. For example, your income may be too low and/or or your debts may be too high to file consumer proposal that would be acceptable to your creditors.
What is bankruptcy?
Filing for bankruptcy is a legal process, regulated by the Bankruptcy and Insolvency Act, by which you’ll be relieved of all of your debts except for:
Secured debts such as a car loan or a mortgage
Student loans if you’ve been out of school for less than 7 years at the time of filing bankruptcy
Child support and spousal support payments that are in arrears
Fines such as traffic tickets
Debts acquired due to fraud or misrepresentation, such as welfare fraud
If you’re filing bankruptcy for the first time and your income is below a certain income threshold, your bankruptcy will last for 9 months after which you’ll receive an automatic discharge from bankruptcy.
What is the cost of filing for bankruptcy?
If your income is above the previously mentioned income threshold, your bankruptcy will last for 21 months after you’ll be required to repay some money back to your creditors out of your income – this is called surplus income.
ARVE Error: src mismatch
src in org: https://www.youtube-nocookie.com/embed/Ih5KZk-q9Ro?wmode=transparent&rel=0&feature=oembed
src in mod: https://www.youtube-nocookie.com/embed/Ih5KZk-q9Ro?wmode=transparent&rel=0
src gen org: https://www.youtube-nocookie.com/embed/Ih5KZk-q9Ro
What happens during bankruptcy?
During your bankruptcy, you’ll be required to attend 2 financial counselling sessions with the Trustee and you’ll need to keep a record of your monthly income and expenses so that your Trustee can calculate your surplus income payments, if any.
ARVE Error: src mismatch
src in org: https://www.youtube-nocookie.com/embed/71REQLVXpOA?wmode=transparent&rel=0&feature=oembed
src in mod: https://www.youtube-nocookie.com/embed/71REQLVXpOA?wmode=transparent&rel=0
src gen org: https://www.youtube-nocookie.com/embed/71REQLVXpOA
Our Licensed Insolvency Trustee office in Mississauga is located at 1370 Hurontario Street, just 2 blocks south of the QEW near Port Credit.
When you first contact us, we’ll book you an appointment with our Licensed Insolvency Trustee, Victor Fong. We’ll also inform you what information you should bring to your meeting with Victor at our Mississauga office.
If you want to work with a Trustee who will give you confidence and peace of mind, look no further.
Working with Victor Fong was great. We just finished our consumer proposal a week ago and the entire process was quite easy. Mary was amazing at answering all my questions and accommodating me when I had any questions or concerns. Her response time was impeccable.Our initial meeting with Victor was great. He walked us through what we needed to do to complete the proposal and everything went quite smoothly after that last meeting.Working with Mary was quite enjoyable. I'm excited that my consumer proposal is finished but I will miss emailing Mary once in a while :)Thank you Victor and Mary for helping us get our lives back on track. It's a new beginning!
After a difficult period in my life I had to use the services of Fong and Partners. Through out my entire experience I felt very respected as a client and would feel comfortable to ask any questions that came to mind and would get very quick responses. My life is back on track now and I thank Fong and Partners for their help along the way. The only stupid question is the one that you dont ask!!
Victor was quick to contact me and the consistent contact was amazing. Victor is really passionate about listening to my needs and it showed as his service with me was nothing short of an amazing experience. He went out of his way to meet on my sched and his attention to detail is exceptional. If you're looking for this type of service look no further, contact Victor ASAP. You wont be disappointed.
Victor and his team were amazing. Treated us with the upmost professionalism. Answered all our questions, took care of everything and turned an unfortunate situation and made it much less stressful. I highly recommend Fong and Partners. Thank you all for your support through the process.
About five years ago I got myself into some serious trouble with a credit card at $17,000.00I was quite young at the time and had nobody to help me. I was served with court papers by the creditor saying I have 2 weeks to pay or they will be suing me to obtain a judgment to garnish my wages. I googled my issue and called the first trustee that came up in my search; David Sklar & Associates 👎🏻 The meeting was nerve-racking and strange, the representative acted as though I was imposing on her personal time, even eating throughout. Nonetheless she told me she would take care of the legalities and call me in a couple of days after she’d made the necessary arrangements. Over the course of the following week, I made numerous attempts to call and email her without any return of contact whatsoever, leaving voicemail after voicemail. On day 8 I visited her in person and she didn’t seem to remember who I was and had misplaced all of my paperwork. After a gruelling 20 minutes of searching she finally located my paperwork and rifled through it, only to advise me that I stand no chance against this creditor and my only option at this point is a full bankruptcy. I left confused and terrified. I sat in my car crying, frantically searching for another trustee to call, this time I read the reviews. Fong & Partners immediately stood out in their excellent rating and reviews so I called, and Mr. Victor Fong answered and told me to come see him right away. Twenty minutes later I was sitting in his office in tears while he carefully examined my litigation papers. He smiled kindly and told me to cheer up because this is absolutely manageable with a simple consumer proposal. No bankruptcy required and No I would not be getting sued. We discussed all of my finances and my debt load and based on that we agreed on a reasonable monthly payment amount. Victor walked me through the entire process step by step and patiently answered every single question I had and believe me, I had lots! He was kind, warm and understanding. He treated me with respect and compassion: debunking all misconceptions and addressing all my concerns. The day was Saturday so he had to wait until Monday to contact the creditor with my proposal. By Tuesday morning my consumer proposal had been accepted, all of my paperwork was signed and I was no longer at risk of being sued or claiming bankruptcy at the age of 21. Over the next five years I had the pleasure of communicating with himself and his wonderful receptionist Mary who is just as kind, sweet and caring as Victor and equally as excellent at her job! Last week was my final payment to this consumer proposal. Mary sent me a paper copy and digital copy of my Letter of Full Performance on THE DAY IMMEDIATELY FOLLOWING MY LAST PAYMENT. Both Equifax and TransUnion have also been notified and I know because I’ve called to check. Over the last 5 years I have been steadily rebuilding my credit with a secured credit card as suggested by Victor in our very first meeting. So Victor and Mary, Thank You! Thank you from the bottom of my heart for all that you have done and the kindness that you’ve showed me during one of the scariest, most devastating times of my life. Words cannot express my gratitude 💕 🙏
Very understanding and professional firm. I filed a consumer proposal with Fong and Partners and all my concerns were dealt with quickly and efficiently. Now I'm on the road to becoming debt free and prospering!To Victor Fong and his team - thank you!
In 2015 I was feeling really stressed about my financial situation, I was extremely nervous about exposing my finances to a stranger but Fong and Partners Inc made it very easy for me. They explained everything thoroughly so that I understood everything that was going on one step at a time. I would definitely recommend them to anyone who is feeling stressed and overwhelmed by their finances.
Fong is a very detail oriented gentleman.The company on a whole is professional. Their response time to e-mails and phone calls is quite fast.My whole experience was almost a joy except for the fact of having to go bankrupt.I would highly recommend their services to anyone .
I had the opportunity to deal with Victor directly and over time with Mary Newport. Fong and Partner staff were very knowledgeable, personable and efficient at resolving my situation. Nothing but praise here for Fong and Partners Inc. and staff . Highly recommended and i'll gladly refer Fong and Partner to clients and friends.
I am an accountant (CGA, CPA) specializing in income taxes for individuals and small businesses. From time to time, I have referred my clients facing significant tax problems to Victor at Fong and Partners Inc.Every client I have referred to Mr. Fong had their tax issues resolved quickly and efficiently - and usually without having to resort to bankruptcy. My clients have told me that Mr. Fong is both knowledgeable and personable.I will continue referring people to Victor and I highly recommend his services to anyone facing financial difficulties.
You must be logged in to post a comment.