519-646-2222HOW DO PROPOSAL ADMINISTRATORS (BANKRUPTCY TRUSTEES) GET PAID?
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The answer to this question can be quite complicated because every individual’s financial situation is different including assets and other monies that are available to pay creditors and to pay trustee fees. However, all trustees are governed by the Bankruptcy & Insolvency Act (“BIA”) and the Rules and Directives that accompany it.
Fees for Consumer Proposals are set according to tariffs established by the Office of the Superintendent of Bankruptcy (see Rule 129 of the BIA). The fees are caped and are deducted from the money paid into the proposal. Unlike with some credit counselling services debtors do not make payments under the proposal and then pay additional amounts for fee payments.