Settling Your Debts Without Breaking the Bank

Consumer proposals are an amazing and comprehensive method of resolving a frustrating debt crisis. They put a halt to calls from debtors, they freeze interest payments, and they provide a single monthly payment for you to repay your debts in a manageable, practical way.

But there is one question that we hear more frequently than most: “How much does a consumer proposal cost?”

We understand the apprehension you might feel at spending more money when you’re trying to get a better grip on your finances. But working with a Licensed Insolvency Trustee like Baker Tilly Ottawa Ltd. means you’re working with federally regulated professionals. As such, there is no upfront fee or surcharge for a consumer proposal. Our fees are paid for as part of your monthly payment once your consumer proposal is accepted, meaning you only make a single affordable monthly payment to the Trustee.

How Do Licensed Insolvency Trustee Fees Work?

Provided you come to us directly, without a referral from a non-regulated debt consulting institution or organization, you will pay absolutely no up-front fees. A consumer proposal is an arrangement between you and your creditors based on your net monthly income and the equity of your assets. Essentially, your creditors are agreeing to accept an alternative payment that you can actually meet on a monthly basis. Your Licensed Insolvency Trustee (LIT) accepts the monthly payment and ensures it is distributed to your creditors.

The LIT’s fees are:

  • Based on a formula prescribed in legislation
  • Non-negotiable based on this formula
  • Typically, just over 20% of the total sum
  • Included in the monthly sum

Most consumer proposals can be paid in full, without penalty, at any time. This means that you’re able to settle your debts faster and aren’t prevented from doing so by other agreements or stipulations.

Finally, because the fees and disbursements paid to the Trustee out of the total amount you must pay to satisfy your consumer proposal, you’re not paying any additional sums to your Trustee—your creditors absorb the cost of the consumer proposal.

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