Surplus Income?

August 10th, 2009 by Questions

My boyfriend may have to claim bankruptcy due to a business his father convinced him to start when he was 19. With little knowledge about how to run the business, he basically let his father make all decisions and my boyfriend was the one to sign the cheques going out. (His father told him he could have an income of about $2000/month) A few years later the business went under and my boyfriend learned of the final numbers in which it owed in taxes etc. Now he may have to declare bankruptcy due to debt owing (over $100 000). I`ve lived with him for years and about 2 years ago I got a well paying job. His income (from his new job) ranges every month from about $1000 -$2000. My income can range from about $ 2500 – $5000 every month. I was reading somewhere on this site that a 2 person household income reaches up to $3200/month. Anything above that is considered surplus income and a percentage can be taken while in bankruptcy. My concern is they`ll take my money because I`m the one to bring in more money, plus the bankruptcy period may last longer. I really have been left in the dark about the whole situation (my boyfriend didn`t even know the extent of the problems) and now I find out I`ll have to surrender my income because we live together? Do you know anymore about how this works? Or anything that would protect me in this situation?

Posted from: British Columbia


One Response to “Surplus Income?”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

From the sounds of it you have a very good understanding how the surplus income obligation works. Unfortunately there is no way around this, the legislation is very clear that this guideline must be followed and failure to do so will result in failure to qualify for a discharge.

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