How Much Does a Consumer Proposal Cost?
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|
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.
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.
Reviews of Our Services
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 yo
Victor and his team (Mary) were always extraordinarily prompt with their responses to any inquiries and went out of their way to respond to questions in detail. They were extremely helpful at all times, even after my Proposal was completed. VIctor is an excellent advocate for his client's needs and
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.
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 wa
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