child support?

May 24th, 2009 by Questions

I am toying with either a consumer proposal or filing bankruptcy. I am a single mother with 2 small children and cant afford a whole lot. It would be cheaper to go bankrupt but I am wondering what would happen if I were to ever start receiving back child support for my children if I am required to surrender this to the bankruptcy. Also, the my exes share of the proceeds of sale of home were awarded to me for pain and suffering and lack of support…most of this has been eaten up in legal fees and everyday living expenses but will I be penalized in bankruptcy for this? Thank you…

Posted from: Ontario

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One Response to “child support?”



May 25, 2009 at 8:01 am, A licensed trustee said:

If you file for bankruptcy and then start to receive child support, the support payments will be added to your income when your trustee is determining your monthly payment (surplus income requirement). If once you add the support you are over the surplus income threshold you’ll be required to pay more.

I’m a big fan of proposals, but unless your fairly certain the support will show up I don’t think you should base your decision on a “maybe”…

In regards to the proceeds from the sale of the home, it will depend on when the funds were received and what you did with the money – all of this should be discussed before your decide to file so that you are aware of how things will be treated. bankruptcy is a legal proecdure and surprises are “bad”.

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