surplus income and household
I have income of rougly 1700 a month. I am living with someone who makes $1200 month. Having been married and divorced before, the person I live with insisted that we sign a legal agreement that states that although we live together, all of our assets are separate and are not joint assets including our income. I pay rent and a certain amount for board. What effect does this have on my household income in regard to suplus income?
Posted from: New Brunswick
Unfortunately, I do not think your agreement will make any difference to your bankruptcy trustee. If/when you file for bankruptcy you have an obligation to disclose the entire monthly income of the people living in your household. If you do not, your trustee has the right to arbitrarily decide how much they think the other people are contributing (if you won’t tell your trustee) and determine your payment based on that assessment.
The other person will not be directly affected – they have no obligation to pay themselves. Their income simply determines what your monthly payment will be.
if your trustee allowed your agreement to keep this other person’s income private then no one would ever disclose the other income’s in their household rendering the law useless.
Sorry, but if/when you file you will be required to disclose all of your household’s income.