Insolvency Articles

What are the financial costs to pay for a proposal or bankruptcy?

A proposal is an option where you and your creditors have formally agreed to some type of repayment terms. Repayment terms refer to either an extension of time or a reduction in the amount of debt to be repaid. The “costs” to file such a proposal are based on a percentage of the total payment you are making. Should you consult a Trustee for professional advice, they can help you develop the proposal, which is then presented to the creditors.

There may be costs involved in filing for personal bankruptcy. These costs include the Trustee’s time, mandatory counselling sessions and government registration fees. The costs that are charged are government regulated. Sometimes there are payments required by the individual, which are set by the Superintendent in Bankruptcy’s guidelines. This is a guideline based on your income, number of dependents and your personal circumstances.

During your initial meeting, you will explore your options with a Trustee, who will help determine your costs based on your personal circumstances. Many Calgarians may come face-to-face with a financial crisis at some point. There are solutions to debt problems, but often they require professional assistance. The best way to deal with your financial issues is to get control of your situation before it becomes more difficult to manage. Bankruptcy may or may not be the best choice for you. There may be other options that work better for your personal circumstance.

At MNP, our insolvency team has more than 30 years of experience helping individuals and businesses get through the tough times – and back on the road to financial health. With a free and confidential consultation, Meyers Norris Penny can assist you in working through your financial crisis. For more information, please visit www.mnpdebt.ca.

Donna Carson, CGA, CIRP, Trustee is a Senior Vice President with Meyers Norris Penny Limited in Calgary, AB.

For more information, please call Donna at 403.538.3187. Consultation calls and meetings are free and confidential.

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