Proposals starting at $40.00 per week

March 6, 2018

Although that may not be the best way or most appropriate way to advertise it is true, consumer proposals starting at $40.00 per week are available to some qualified people.

So, what do you need to qualify for such low payments? You need stable income, you generally need to have a lack of means (to make higher payments) and you need to have creditors willing to accept such payment terms.

Proposals need to be reasonable to your creditors, providing them with a better return than they might get from a bankruptcy, they need to generate enough money to cover the administrative costs and they need to be sustainable.

$40.00 per week is equivalent to a total of $10,400.00 or $170.00 per month paid over five years. The breakdown looks something like this:

Registration Fee:                           $150.00
Trustee Fee:                                $1,500.00
Counselling Fee:                            $170.00
Trustee Distribution Fee:         $1,736.00
HST on Trustee amounts:           $429.78
Superintendent’s Levy:                $320.71
Creditor Distribution:               $6,093.51
Total:                                   $10,400.00

After the trustee and Superintendent of Bankruptcy fees, tariffs and levies and taxes have been paid there is a little over $6,000.00 to be shared among the creditors. So the likelihood of acceptance may depend on the amounts owed to creditors in addition to other factors identified.

It may be possible top make a smaller payment depending on your situation but such occurrences would be rare indeed.