How much does a consumer proposal or bankruptcy cost in Canada? Trustee fees and the OSB levy
The trustee fee tariff in the BIA General Rules for consumer proposals and summary bankruptcies, the 5% OSB levy, filing and counselling fees, and the changes proposed in 2025.
Licensed Insolvency Trustee fees for most personal insolvencies in Canada are set by regulation, not negotiated. Under the Bankruptcy and Insolvency General Rules (C.R.C., c. 368), the administrator of a consumer proposal receives $750 when it is filed, $750 when it is approved and 20% of the money distributed to creditors, plus counselling at $85 per individual session, the OSB filing fee ($123.17 for a consumer proposal since 31 March 2026) and sales tax. In a summary administration bankruptcy the trustee's fee is 100% of the first $975 of receipts, 35% of receipts from $975 to $2,000 and 50% above $2,000, plus fixed items. A levy of 5% of distributions goes to the Office of the Superintendent of Bankruptcy. In both cases the fees come out of what you pay into the proposal or the estate; you do not usually pay a separate bill.
Part of the consumer proposal vs bankruptcy overview. Figures are those in force on 27 October 2026. General information, not legal advice.
Consumer proposal costs (Rule 129)
| Item | Amount | When |
|---|---|---|
| Administrator fee on filing | $750 | When the proposal is filed with the Official Receiver |
| Administrator fee on approval | $750 | When the court approves or is deemed to approve |
| Administrator percentage | 20% of money distributed to creditors | At each distribution |
| Counselling | $85 per individual session; $25 per person in a group session (Rule 131) | Two sessions |
| OSB filing fee | $123.17 from 31 March 2026 (Rule 132 base of $100, adjusted by the OSB for inflation each 31 March) | On filing |
| GST/HST and QST | At the provincial rate | On the fees |
| OSB levy | 5% of distributions to creditors | Deducted from distributions |
Illustrative calculation. You pay $300 a month for 60 months: $18,000. Ignoring sales tax:
- Fixed costs: $750 + $750 + $123.17 + 2 × $85 = $1,793.17.
- Remaining: $18,000 − $1,793.17 = $16,206.83. This pays both the distributions D and the 20% fee on them, so D = $16,206.83 ÷ 1.2 = $13,505.69.
- The administrator's percentage: 20% × $13,505.69 = $2,701.14.
- OSB levy: 5% × $13,505.69 = $675.28.
- Creditors receive about $13,505.69 − $675.28 = $12,830.41.
With 13% HST on the $1,500 of fixed fees and on the 20% share, as in Ontario, creditors would get about $12,407 instead. The proposal cost split estimator gives a slightly more conservative estimate in one step.
Summary administration bankruptcy costs (Rules 128, 130, 132)
Most personal bankruptcies are summary administrations: the bankrupt's realizable property, after secured claims, is worth $15,000 or less (Rule 130). The trustee's fee depends on the estate's total receipts: asset realizations, surplus income payments, tax refunds and any amount paid under an agreement.
| Receipts band | Trustee's fee rate |
|---|---|
| First $975 | 100% |
| $975 to $2,000 | 35% |
| Above $2,000 | 50% |
On top of that, the trustee may claim counselling costs, the OSB filing fee for the assignment (Rule 132 sets base amounts of $150, or $75 for a first-time individual bankrupt in a summary administration; after the OSB's inflation adjustment of 31 March 2026 these are $184.78 for an ordinary administration and $92.38 for a single summary administration), the registrar's fee, applicable taxes and a $100 lump sum for administrative disbursements.
Illustrative calculation. A first-time bankrupt with no assets agrees to pay $200 a month for 9 months: $1,800 of receipts. The fee is $975 + 35% × ($1,800 − $975) = $975 + $288.75 = $1,263.75. Add $100 of disbursements, $170 of counselling and the $92.38 filing fee, and about $174 would remain for creditors, from which the 5% levy is deducted. With receipts of $5,000, the fee would be $975 + $358.75 + $1,500 = $2,833.75.
These numbers show why small bankruptcies yield little for creditors: the tariff absorbs most of the first $2,000.
Agreements to pay the trustee
If you have no assets and no surplus income, there may be nothing in the estate to pay the trustee. BIA s. 156.1 allows a written agreement in which a first-time bankrupt pays for the trustee's services. The amount is still governed by the tariff. Ask for it in writing and check that it is consistent with the rules.
Ordinary administration bankruptcies
When property exceeds the summary administration threshold, the bankruptcy is an ordinary administration. The trustee's fees are then approved by the inspectors and the court, and creditors can challenge them on taxation of the trustee's accounts. This is less common for individuals.
The proposed 2025 changes
On 29 November 2025, the Canada Gazette, Part I, published proposed amendments to the General Rules. Among other things they would:
| Item | Current | Proposed |
|---|---|---|
| Consumer proposal fees | $750 + $750 | Up to $850 + $850, indexed |
| Summary administration fee | 100% to $975; 35% to $2,000; 50% above | 100% to $1,700; 45% above, up to the threshold |
| Summary administration threshold | $15,000 | $20,000, indexed |
| Administrative disbursements | $100 | $140, indexed |
| Counselling | $85 / $25 | $120 / $35, indexed |
| Consumer proposal limit | $250,000 | $325,000, indexed |
The fee, threshold and limit changes would apply only from the first anniversary of the final regulation's registration and only to new filings. The amending regulation had not been incorporated into the General Rules on the Justice Laws website (current to 30 September 2026) when we checked, and no final regulation had appeared in the Canada Gazette, Part II, up to its 21 October 2026 issue. Treat the current column as the law until the OSB announces otherwise.
Fees outside the tariff: be careful
- Third-party "debt consultants" may charge hundreds or thousands of dollars to refer you to a trustee. That money does not go to creditors and is not part of the BIA tariff. See unlicensed debt consultants.
- Ask the trustee whether any referral fee was paid for your file. OSB rules on referral arrangements require trustees to manage these relationships.
- Credit counselling agencies set their own DMP fees; see DMP vs consumer proposal.
Related: surplus income is often the largest receipt in a bankruptcy estate; see the 2026 surplus income standards. For eligibility and timelines, see consumer proposal rules.
Frequently asked questions
Do I pay the trustee upfront?
Not for a consumer proposal: fees come out of the payments. In a bankruptcy, the estate pays; if there are no assets, you may sign a payment agreement. A large upfront fee demanded by anyone other than the trustee is a warning sign.
Can I negotiate the fee?
The tariff sets maximums for consumer proposals and summary administrations. A trustee cannot charge more without court approval. Shopping around matters more for service and advice quality than for price.
Is the OSB levy a fee I pay?
It is deducted from distributions to creditors, so it reduces what they receive, not what you pay.
Why is there tax on the fees?
Trustee services are taxable supplies. GST/HST, and QST in Quebec, apply to the fees, which reduces the amount reaching creditors.
Sources
- Justice Laws Website — Bankruptcy and Insolvency General Rules, Rules 128–132; BIA ss. 147 and 156.1
- Canada Gazette — Part I, 29 November 2025, proposed amendments to the General Rules
- Office of the Superintendent of Bankruptcy — directives, levy and trustee search
