How much can I keep to live on

December 23rd, 2009 by Questions

I`ve been living on such a lean budget the past year trying to stay on top of my loan and credit card payments that I don`t even know what it would realistically cost me to live. Especially considering most of the money paid on line of credit and credit cards ends up paying for groceries and cost of living. Is there a percentage of my monthly income that is considered a reasonable amount to expect to live on?

Posted from: Manitoba


One Response to “How much can I keep to live on”

, A licensed trustee said:

There are no percentage of your income that is considerd reasonable, but the government has established surplus income thresholds for the purposes of determining the amount you are required to pay if you file for bankruptcy.

For example, the government feels a single person requires $1870/month of after tax income (from all sources) to maintain a reasonable standard of living. If a person files for bankruptcy and earns more than that amount then they are required to pay 50% of the excess to their trustee for the benefit of their unsecured creditors.

There are numbers for households up to 7 persons. You could either do a google search for Directive 11r Surplus Income or use the links to conatct a trustee in your area to explain thiis in greater detail to you.

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