What is allowable household income for family of 3?

October 25th, 2005 by Questions

I have looked all over online, and could not find the allowable monthly amount a household of 3 can earn in a bankruptcy?

Also, how do they deal with the extra pay week everyone gets every 3 months (since there are 13 weeks in every 3 months) i.e. in November my husband will receive 3 paycheques (bi-weekly pay)? If the extra pay brings you over the allowable income amount, do you have to pay some of that into the estate?

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One Response to “What is allowable household income for family of 3?”



October 26, 2005 at 12:12 pm, Barton Goth, GCO Inc. Bankruptcy Trustees said:

There is no cap as to what you are able to earn in a bankruptcy, but the cost of a bankruptcy can fluctuate based on your monthly income and the size of your family. For a family of 3 the allowable amount according to the 2005 guideline is $2662.00 after tax.
To help account for fluctuating income the trustee’s office normally apply the calculation to your average family income over the duration of the bankruptcy.

There are many rules related to surplus income, so you we strongly advise that you contact a licensed trustee to explain the calculation in detail before you decide to file for bankruptcy. If you follow the “contact an expert” link on the side of the page you will be directed to a reputable trustee in your area who will be able to explain this at length.

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