Surplus Income Calculation

March 20th, 2011 by Questions

Hello, I have a question about when exactly surplus income amount is finalized. At the outset of my bankruptcy i was making way below the 2345$ (for 2 person family), and therefore I did not have any surplus income. As the months have gone on, my income varies signifincatly. Sometimes I am over, other times not at all. As of next month I will be back down well below the cutoff due to medical reasons (pregnancy) preventing me from preforming all of my pre-pregnancy work duties.

Now my question is if the trustee calculates after 7 months, my average income will be $2447.57 (over by 102.57 meaning I would have to pay $51 x 9 months surplus income. However, if the trustee calculates after 8 months, my average income will only be $2386.65 — meaning I have no surplus income. And if after the 8th month I would continue not to have any surplus income, so my question is which will happen here? If she calculates after 7 months can i ask her to recalucate after 8 months? Or any other advices??
Thank you

Posted from: Ontario


One Response to “Surplus Income Calculation”

, A licensed trustee said:

In the 7th month your trustee is required to calculate your average monthly income to detremine if you will be required to pay surplus and to see if your bankruptcy will be extended from 9 to 21 monts (for a first time filer).

If your average monthly income is less than $200 over the surplus threshold for your size of household then no surplus is payable and the bankruptcy will run 9 months.

If your average is $2447 then it is less than $200 over the threshold (which for 2 people was $2345) and therefore you should not have to pay surplus and (assuming you do everything that you are supposed to) your bankruptcy will end in 9 months.

This sort of question should really be directed to the trustee you are working with – after all, that is one of the reasons they are being paid…

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)