January 9th, 2011 by Questions

I am currently in a bankruptcy. My surlus income is above the avearge range when combined with my spouses. I am currently collecting Maternity benefits. I am required to pay $535.00 per month because of the surplus income when combined with my spouses. I only get $772.00 every 2 weeks from maternity benefits. I am not able to pay the monthly amount. My spouse is not responsible for my debts, but I still have to pay the $535 because of his income combined with mine. It doesnt make sense. If I do not pay my monthly amount what will happen when it comes time to do a discharge from the bankruptcy? I am currently owing $3000.00 to my trustee because I cannot pay the monthly amount on what I get for my maternity beneits. Can someone please tell me what is going to happen.

Posted from: Ontario


One Response to “Payments”

, A licensed trustee said:

As a rule, anyone posting a question to this site that has already filed bankruptcy or a proposal really should be directing their questions to their trustee. They have access to all of your information and besides, you are paying them to assist you…

That being said, we try to provide quick general answers that we think will benefit anyone reading this site. In this case, I don’t think you will like my answer…

Before you decided to file for bankurptcy the surplus income rules should have been clearly explained to you. In other words, if you told your trustee about your maternity benefits and spouse’s income they should have estimated what your payment was going to be BEFORE you committed to the process. If they weren’t explained then you may want to lodge a complaint with the Superintendent of Bankruptcy. You’ll still have to pay the required amount, but at least the trustee you used will be less likely to do the same thing to anyone else.

If you are unable to pay the required amount of surplus in full before the expiration of the 21st month then you may request mediation which can extend your period to pay by 12 months. If you require even more time then your trustee will schedule a hearing in Court and you may ask the Court for a longer period of time to repay.

For those of you that don’t know what the surplus income rules are, the government has set income thresholds for families of differing sizes. If you file bankurptcy and your income exceeds these thresholds then you will be required to make surplus income payments and your bankruptcy will be extended from 9 to 21 months.

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