How Much Does A Consumer Proposal Cost?

The consumer proposal is now one of the most widely used solutions for overcoming debt in Quebec, accounting for a majority of all insolvency cases filed.

With its growing popularity, one question often comes up: how much does a consumer proposal really cost?

Our experts will explain to you in complete transparency how the payments are calculated, what they include, and why this solution remains regulated and accessible to all.

Consumer proposal: a single cost governed by law

The fees of a licensed insolvency trustee are strictly regulated by the Bankruptcy and Insolvency Act (BIA). This means that the amount of their fees is set according to an official scale established by the Government of Canada, guaranteeing total transparency for each person filing a consumer proposal.

In other words, you pay no set-up fees, no hidden charges and no additional costs when you deposit.

The trustee's fees are deducted directly from your monthly payments. These cover both the partial repayment of your debts and the costs of managing the file. In this way, the overall cost of your proposal is fully included in the payments agreed with your creditors, with no unpleasant surprises and no additional outlay.

How are monthly payments calculated?

The amount of a consumer proposal is not determined at random. Before filing the file, the authorized insolvency trustee performs a complete analysis of your financial situation:

• Income,

• Essential expenses (housing, transport, food),

• Total debts

• Family situation.

This assessment enables us to establish a realistic monthly payment, tailored to your ability to pay.

The aim is simple: to offer you an amount that you can actually maintain for a period of 3 to 5 years, without compromising your basic needs or risking new debt.

What your payments cover

Your monthly payments cover two main areas:

1. The partial repayment of your debts according to the offer negotiated with your creditors, often at a fraction of the original amount.

2. The trustee's fees and administrative costs, already included in the overall amount agreed.

Once again, no additional payment is required. Everything is included in the amount you pay each month.

Deposit fees and other technical costs

Before officially filing your consumer proposal, the trustee may ask for a small initial deposit, generally between $100 and $200. This amount is used to cover some of the preliminary administrative steps, such as preparing and submitting the file.

It is important to note that this deposit is not an additional cost. It is deducted in full from the total amount of your application once it has been accepted.

In other words, it's an advance on your future payments, not an additional fee.

A humane, supervised solution for starting afresh

At Mallette, our licensed insolvency trustees take the time to understand your situation as a whole (debts, income, expenses and personal objectives). Each case is studied rigorously to establish a clear, appropriate and realistic repayment plan.

Our consultations are confidential and free of charge, and our approach is aimed first and foremost at avoiding bankruptcy whenever possible. Our aim is to help you regain financial stability and start afresh on a solid footing, with complete confidence and no surprises.