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proposal payment calculation follow up

I asked the question about proposal calculation a couple of days ago. The answer sounded like it was up to me to include my wifes baby bonus and child support. The trustee I spoke to said no that I am obligated to disclose the totals? Is that standard or can I refuse? My wife doesn’t want to be a factor period and the trustee says that thats fine but I still have to disclose her info or he won’t file. Can he do that?

Posted from: Ontario

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One Response to “proposal payment calculation follow up”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

Legally speaking you can choose not to disclose your spouses income. This is permitted by the amendments to the BIA that were made Sept. 18, 2009. What this will do is it will impact the way your cost of bankruptcy would be estimated (i.e. it reduces the Superintendent Guideline threshold by 50%, you should be careful when doing this as in some circumstances can dramatically increase the anticipated recovery in a bankruptcy) and in turn will impact the offer that needs to be made to your creditors.

The real question isn’t whether it can be done or not, but how will your creditors react to this. The creditors could be concerned that refusing to disclose your spouses income suggests that your not operating in good faith and as a result choose to either vote against the proposal or make an aggressive counter offer. So it is not without it’s risks, but it is possible.

Now I would suggest if your trustee hasn’t or isn’t willing to explain this to you it might be worth looking for a second opinion. But to clarify, what you are doing is not refusing to disclose your spouse, but refusing to disclose their income. These are two very different things.