You consider the personal bankruptcyAre you concerned about your property manager's fees? Your question is valid and relevant, and we're here to give you the answers you need. all information you need.
First of all, we'd like to start by reassuring you. The syndic's fees are set by the bankruptcy and insolvency act. Their salaries are therefore paid from the funds accumulated in your file when your syndic acts as administrator of a property. consumer proposal or bankruptcy.
Bankruptcy trustees offer a wide range of services, and fees vary. according to each case. As each case is unique, it's rather difficult to determine the average fee for a property manager.
On the other hand, our experienced financial advisors are happy to shed some light on the subject. Find out everything there is to know about syndic fees.
Summary bankruptcy and trustee fees
A personal bankruptcy is said to be summary when assets are less than 15,000 $. This is the most common type of personal bankruptcy, and according to rule 128, fees are as follows based on assets.
The syndic is entitled to 100 % of the first 975 $ of all revenues. After that, it's 35 % between 975 and 2,000 $, then 50 % above 2,000 $. For example, for assets of 3,500 $, here's how the managing agent's fees are calculated.
- 100 % of the first 975 $ equals 975 $ fixed for the trustee;
- 50 % of revenue in excess of 2,000 results in this calculation: (3,500 - 975)/2 = a total of 1,262.50 $
- Fees are therefore 2,237.50 $ for assets of 3,500 $.
Fees and ordinary bankruptcy
Whether it's a commercial bankruptcy or personal, if assets exceed 15,000 $, the managing agent's fees will be equivalent to 7 % des actifs ainsi que toute autre rémunération approuvée par le tribunal et les creditors. The actual disbursements incurred form part of this remuneration, and your trustee may ask for guarantees or deposits if the assets are insufficient or seem doubtful.
Consumer proposals and composition proposals
If you can afford the consumer proposition, it is an excellent solution to avoid bankruptcy. The trustee's fees are still determined by the Bankruptcy and Insolvency Act, but a consumer proposal is still a better solution than bankruptcy if you can go that route.
Here's how the trustee's fees are calculated for the administration of a consumer proposal. The calculation is very similar to the summary bankruptcy:
- 100 % of the first 1,500 $ ;
- 20 % of all sums remitted to creditors in excess of the first 1,500 $ ;
For a consumer proposal of 3,500 $, here's your calculation.
- 1,500 $ for the first 1,500 $ ;
- 20 % of 2,000 $ not included (400 $) ;
- For a total of 1,900 $ ;
As for the composition proposal, the fees are decided on the basis of an agreement between the trustee and the debtor. They must be approved by creditors and the court. It is therefore difficult to speak of average fees here, since every case is different.
There may be exceptions to this rule, particularly in the case of individual contracts. In this case, the fees are generally decided in the same way as any other professional work, between the individual and his or her trustee.
If you have any questions about property management fees, please do not hesitate to contact us. An experienced member of our team will be happy to answer your questions.
