Surplus income for joint bankruptcy

March 19th, 2007 by Questions

My husband and I are unable to afford our debts. Neither of us co-signed for the other’s debts. There is no way he can afford to pay for his debts and expects to declare bankruptcy shortly.

I am trying to pay down my debts, but I’m worried that I won’t be able to, and if I can’t, I might need to declare bankruptcy next year. (I might get a raise at the end of the year that would let me afford my payments, but I might not get it.)

If he declares this year, and I declare next year, will the surplus income amount be applied to our household for 9 months now, and again when I declare a year from now?

Is it just better for everyone if we declare individually at the same time? (Our debts amounts are too different to declare jointly.)


One Response to “Surplus income for joint bankruptcy”

, Barton Goth, GCO, Bankruptcy Trustees said:

The way your surplus works is that the calculation is based first on your total household income and then you must multiply the resulting figure by your percentage of the total household income. Therefore your surplus is only based on your percentage of the household surplus and will not reflect your husbands. As a result you will not have to pay surplus twice, although both of you will be required to pay your individual portion of the surplus.

For more information on how this surplus calculation is done you are best to contact a licensed trustee and have them walk you through the specifics of this calculation.

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