What’s The Cost Of A Consumer Proposal?

What’s The Cost Of A Consumer Proposal?

There is no simple answer to “how much does a consumer proposal cost” – this because there are many factors involved.

Consumer Proposal Cost Factors in General

A Licensed Insolvency Trustee will calculate your consumer proposal payments based on the following factors:

    • The income of your household and your contribution to it.
    • Your assets.
    • The total amount of debt you owe.
    • Which specific creditors you owe.
    • Whether you’ve previously filed for bankruptcy.

Consumer Proposal – Cost Factors in Detail

All other things being equal:

    • The higher your monthly income, the higher the consumer proposal payments your creditors will expect you to pay.
    • The more assets you have, the larger the settlement your creditors will expect from your consumer proposal.
    • The more debt you have, the more money your creditors will expect you to pay in your consumer proposal.
    • Certain creditors such as the Royal Bank of Canada or the Canada Revenue Agency will likely demand more money than what you’ve offered when you filed your consumer proposal. They will usually request a meeting of creditors to negotiate for more money from you.
    • If you’ve previously been bankrupt, this may be an factor in determining how much money you’ll need to offer your creditors in your proposal before they’ll accept it. This is particularly true for creditors such as the Canada Revenue Agency.

If you really wanted a rough guide as to “how much does a consumer proposal cost” – subject to the factors discussed above, look at this table:

How much does a consumer proposal cost?

Amount of debt Monthly net income Estimated consumer proposal payments
less than $12,000 less than $3,100 $120/month x 60 months = $7,200
between $12,000 - $18,000 less than $3,450 $150/month x 60 months = $9,000
between $18,000 - $21,000 less than $3,650 $180/month x 60 months = $10,800
between $22,000 - $24,000 less than $3,700 $200/month x 60 months = $12,000
between $24,000 - $30,000 less than $3,950 $250/month x 60 months = $15,000
over $30,000 less than $12,000 50% of your debt, paid over 60 months
The following assumptions are made in generating this table:

1. You are single with no dependants

2. You have no assets

3. You've never filed for bankruptcy

Whatever your consumer proposal payments end up being, our fees are paid out of your consumer proposal payments according to a tariff under the Bankruptcy and Insolvency Act. To be more specific – you do not pay a separate fee for our services – your proposal payments include our fees as well as the settlement payment to your creditors.

Also, at Fong and Partners Inc., the only up front cost you’ll pay to start the consumer proposal process is a $100 filing fee. You needn’t pay anything else until your consumer proposal is approved.

Our Promise To You

If you want to work with a Trustee who will give you confidence and peace of mind that your consumer proposal is being dealt with in a professional manner, look no further.

Contact Fong and Partners Inc., a member in good standing with the Better Business Bureau with an A+ Rating and  one of the 3 Best Rated Trustees in the Greater Toronto Area.

Phone: 416-260-3264

Email:   help@startingovertoronto.com