Proposals starting at $40.00 per week
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
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.