Payments while in bankruptcy
How are the calculations of your payments done while you are in bankruptcy? I see a lot of posts regarding “surplus” income. What if I don’t have any “surplus”. My family’s living expenses are only just barely covered by my income and I am not making any payments on my debts or interest. The only non-necessity left that I can cut off is internet, which I have not done so far because the kids seem to need it so much for school assignments. Any small surplus that I have each month (ie: 50-75 dollars) I have to save for unexpected bills (car breaks down) or infrequent payments (yearly parking bill), so they aren’t really surplus they are just not owed yet. What type of payments will I be expected to make?
There are a few things that must be clarified. The first is surplus, you are correct that the amount of money you are required to contribute to your estate while bankrupt depends on surplus, but this surplus is not measured with respect to your expenses but with respect to your monthly income and the size of your family.
Under current rules, a family of two starts paying the surplus income once the family income is over $2,237 per month; for a family of three the limit is $2,750.
Either way, we recommend that you contact a licensed trustee to discuss the details of this calculation so you will have a good idea of what to expect prior to filing for bankruptcy.