FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

Total Unsecured Debt*

*Unsecured debt includes credit cards, lines of credit, bank overdrafts, payday loans, and unsecured personal loans (excluding student loans). It does not include mortgages and car loans.

This field is hidden when viewing the form

Source

How can we help you?

If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Select Trustee By Province

Suplus Income…

Let`s say that I have filed for personal bankruptcy. My family consists of my wife and my son. My wife works and brings home $3400/mo (take home). Since I am not working, I have no surplus income, hence I don`t have to pay anything to a trustee. I was told that I would be discharged in 9 months (1st time BK).

Hypothetically, if I start working, while I`m bankrupt and take home $2000/mo, i will have some surplus income.

How much will I be required to pay per month ?
Will the duration of my bankruptcy be extended past the 9 months, and if so, how many more months before I am discharged ?

You best guess is fine with me.
Thanks

Posted from: Ontario

Share this post:

X (Twitter) Facebook Pinterest LinkedIn Email

One Response to “Suplus Income…”

A licensed trustee said...

You are corrct when you say if you have no income then you won’t be required to pay any surplus (regardless of the household income). I/when you start working during your bankruptcy the surplus rules would then apply.

In the example you have given, the new family income is $5400 ($3400 + $2000 for you). The threshold for a family of 3 is $2811. Your surplus payment would roughly $500 per month. Depending on how far into your bankruptcy you are when you start working this amount of surplus might very well cause your bankruptcy to be extended beyond the 9 month minimum.

Two things for you to consider: if your trustee becomes aware that you could have accepted a job and didn’t to avoid surplus you may be assessed the payments anyway…

And if you had this job you might be better off filing a proposal instead of bankruptcy. Why don’t you contact a trustee in your area to discuss your situation in greater detail.