February 14th, 2012 by Questions
if the debt is only in my name why do you add my income and my spouses income to calculate total income
Posted from: Ontario
February 14, 2012 at 10:47 am, A licensed trustee said:
The short answer is ” because that’s how the law works”. If you want releif from your debts you are required to report the total income for your household and your payments will be based on your share of the toital income and the number of people in your household.
Your spouse does not have to co-operate, but if they do not then the threshold for determining your payments will be cut in half. For example, a 2 person household is allowed $2,398 in after tax income per month – if your spouse refuses to disclose thier income the threshold is reduced to $1,199.
A word of warning – your spouse does not have to disclose thier icome to your trustee, BUT if your file ends up in Court the judge has the power to demand your spouse’s co-operation.
Be careful and discuss this aspect of the law with your trustee BEFORE you decide to file.
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