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Garnished wages – raises, bonuses

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

One Response to “Garnished wages – raises, bonuses”

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.