Understanding prices and fees during a consumer proposal with Bromwich+Smith 

^{Bromwich+Smith staff | Reading time: 3 minutes and 37 seconds | 724 words | Date: 2024/02/28}
 
Across Canada, Licensed Insolvency Trustees provide debt consultations at no cost and with no obligation. During this session, they will evaluate your current financial situation including your income, expenses, assets, and all debts. If it’s appropriate, they will customize a plan to reduce or eliminate your debt, called a Consumer Proposal. You will be provided with a detailed quote outlining the proposed monthly payments and for how long these payments will need to be made.  
 
It is vital to note that this proposed quote assumes your creditors will approve the plan. From the date you sign into the Consumer Proposal, your creditors have 45 days to review and accept it. The proposal will move forward as long as a majority of the creditors included accept it. This means that even if some creditors have voted against it, the proposal is considered approved and will move forward. If your proposal is NOT accepted, your trustee will advise you of next steps. 
We are often asked how we receive payment for our services. That amount is defined by the legislation and included in your Proposal payments. There is no up-front or extra cost to you. 

What can change the initial quote provided? 

1. Creditor negotiations: As noted above, your creditors need to accept the proposed terms for the consumer proposal to be successfully accepted. There can be times when your Licensed Insolvency Trustee will need to negotiate with your creditors beyond the initial quote, which could result in either a lower or higher monthly cost.  

2. Change in circumstances: If your financial situation changes after the initial consultation, you will need to inform your Licensed Insolvency Trustee right away. Unexpected changes to income, expenses, or assets can impact your monthly payments and the total cost.  

3. New information: Sometimes the numbers you provide during your consultation are based on estimates and not precise numbers. Getting the correct information can change your total quote significantly.  Some examples include, but are not limited to, an increase in the value of your house, the amount of debt owed to one or multiple creditors is higher then first thought, or one or more of your debts being ineligible for your debt relief program. For reference, ineligible debt includes student debt fewer than seven years old, debt incurred through unpaid child or spousal support, or debt tied to an asset making it secured debt. 
 
4. Timing: If you start the process of filing a consumer proposal but do not sign right away your debt will continue to grow because fees including interest and late payment penalties will continue to accumulate. From the date that you sign your Consumer Proposal, all of these charges will stop however they will not be backdated to the initial consultation. 

Starting the process of a Consumer Proposal is the first step in your journey to financial recovery, and understanding factors that influence your total debt will help you make the best-informed decision for your unique financial situation. We understand that this is a major financial decision and should not be rushed however when it comes to debt time is of the essence. By prolonging the process you will continue to see added charges grow your debt.  

Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at  1-855-884-9243,  Live Chat  or you can request a call back at contact us page. We want to see you flourish!       
 

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FAQs: 

1. How much does the consultation with a Licensed Insolvency Trustee cost?

The debt consultation with a Licensed Insolvency Trustee is provided at no cost and carries no obligation.

2. What happens if my creditors do not accept the Consumer Proposal?

If your proposal is not accepted by creditors, your trustee will guide you on the next steps.

3. Can the initial quote for the Consumer Proposal change?

Yes, factors like creditor negotiations, changes in circumstances, new information, and timing can alter the initial quote.

4. Are there any upfront or extra costs for Bromwich+Smith's services?

No, the fees for Bromwich+Smith's services are defined by legislation and included in your proposal payments; no upfront or extra costs to you.

5. How can a delay in signing the Consumer Proposal affect my debt?

Delaying the signing process may result in continued debt growth due to accumulating fees, including interest and late payment penalties.