How are Licensed Insolvency Trustees paid?
Trustee's fees are paid out of the proposal amount.
Creditors are paid dividends after the Trustee's fees are covered. In a Consumer Proposal, these fees are based on a tariff (%) set out in the Bankruptcy and Insolvency Act. In a Division I Proposal, there are various ways to structure the Trustee's fees and this will be set out in the terms of your Proposal and approved by Creditors and the Court. Trustee's fees are always reviewed and approved by the Office of the Superintendent of Bankruptcy and in some instances, the Court will provide its approval as well.