Surplus income dilemma
October 9th, 2008 by Questions
I am considering personal bankruptcy because a failed business has left me with a large amount of unpaid credit card debt, which I am unable to pay.
However, the surplus income rules seem to make things impossible. It costs us $7,000 / month for our family of three to live (that might sound like a lot, but that is really what it costs us in rent, car payments and food, utilities and no luxuries).
Under the surplus income rules, it seems that we`d pay for surplus income over $2,811. If we bring in $7,000 / month, we`ll have to pay 50% of the first $500 ($250) and then 75% of the balance ($2,766.75). So suddenly we`re back down to $4,000 / month and can`t afford to live.
And if we earn more money, then we`re just creating a larger amount of surplus income. It seems like an impossible situation.
In this scenario, is it impossible for me to declare personal bankruptcy and make a decent living afterwards?
Posted from: British Columbia