Garnished wages – raises, bonuses

September 20th, 2012 by Questions

During the period you are bankrupt, and you receive either a bonus or a pay increase from your employer, and it is over and above the allowed net income, is it garnished in full? What if the bonus is paid directly into your rrsp? What about a car allowance or a company car? Thank you.

Posted from: New Brunswick

Questions

One Response to “Garnished wages – raises, bonuses”


September 20, 2012 at 8:27 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Any income you receive during the bankruptcy that is over and above the surplus income threshold will be treated the same (i.e. 50% of it must be paid into the bankruptcy estate). This includes a car allowance or monies paid directly into your RRSP’s, you can’t simply escape the surplus income obligation by having funds you earn re-directed elsewhere.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)