monthly income
I am married and will be filing personal bankruptcy in the near future. My husband works and gets pensions from the military and I also work. We do not share bank accounts and have no debts which is registered in both our names and we do not file a joint tax return. What impact will his income have on my filing? Thank you.
SB in NB
Posted from: New Brunswick
If you file bankruptcy prior to Sep 18 then you are required to dsiclose your spouses income in order for your trustee to establish your surplus income payment. If your spouse refuses to disclose their income to you (so that you can disclose it to your trustee) then your trustee may arbitrarily determine your spouses’ income and assess your payments accordingly. This ALWAYS resulted in a higher payment than you’d be required to make if your spouse cooperated…
Effective Sepember 18, if your spouse fails to co-operate by disclosing their income then you will only be entitled to 1/2 of the income threshold that you might otherwise be entitled to.
For example, a three person household has an surplus income threshold of $2862. If you spouse fails to disclose their income your trustee will treat you as a two person household and your threshold will be 50% of the actaul allowed. The allowed threshold for 2 people is $2328 so your surplus income threshold would be $1164.
This is bound to get confusing so you should discuss it in detail with your trustee BEFORE you file.