This is a common question that Trustees in Bankruptcy receive from friends, family, fellow professionals, and clients alike.
“But Steve, if the debtor can’t afford to pay their creditors, how can they afford to pay you?”
It’s a logical question with a simple answer: The debtor pays a fraction of what they owe on a monthly basis and our fee is included in those payments. Funds received by us are placed into a trust account that we administer on behalf of both the debtor and their creditors. From time to time funds are withdrawn by the Trustee and paid to the creditors (if available). Welker and Company’s minimum fee is $1,800 per filing.
Trustees are the only debt professionals that are licensed and regulated by the federal government. This means that among other things, Trustee fees are regulated by the Office of the Superintendent of Bankruptcy Canada, a division of Industry Canada, which is a branch of the Federal Government. No Trustee is allowed to charge more than the amounts outlined in the General Rules of the Bankruptcy and Insolvency Act found here. Trustees’ trust accounts are subject to regular audit as are our files to ensure that they are being administered in accordance with the Bankruptcy and Insolvency Act. No other debt professional is subject to these same regulations. This is a critical factor to consider when choosing someone you can trust to solve your debt problems.
For more information on Trustees in Bankruptcy you can visit Industry Canada’s website here or read our blog post on “What is a Trustee in Bankruptcy?”.
If you or someone you know is dealing with debt problems remember that Welker and Company offers free initial consultations where we take the time to explain all available options. We never apply pressure and hope that people leave our offices feeling relieved and informed. Personal and professional referrals are always appreciated.