Is bankrupt allowed to make purchases?
April 10th, 2014 by Questions
After everything is filed, and you have to report your income and expenses etc, is someone who is bankrupt allowed to make purchases? For example clothing, or a laptop for school?
Posted from: British Columbia
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April 10, 2014 at 5:37 am, Gareth Slocombe, Trustee | C.I.R.P | C.A said:
Generally speaking, how you spend your money is up to you. The trustee looks at your net income after statutory deductions and certain other expenses (such as child support, necessary medical expenses etc) to determine if you have “surplus Income” according to the guidelines set by the Superintendent of Bankruptcy. If you do have surplus, 50% of the surplus will be required to be paid into the bankruptcy estate. The standard for a single person is currently $2,014. While your spending habits could be questioned should your discharge from bankruptcy be in question, there are no specific restrictions in this regard.