Income Taxes and Surplus Income

May 2nd, 2013 by Questions

Hi. I claimed bankruptcy in late November. My post bankruptcy tax return left me with a debt owing for income taxes. Can you please explain to me why I can’t use the amount that I have paid as a surplus income adjustment? If it had been a return it would have been considered income. I’ve tried asking my trustee why but they don’t give me an explanation. To me, if taxes had been taken correctly off of my pay then I would have had a lower amount of net income and a lower surplus income in December.

Posted from: British Columbia

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One Response to “Income Taxes and Surplus Income”



, A licensed trustee said:

In my opinion, you are correct – the tax bill represents a deduction from your earned income for surplus purposes. If you and your trustee don’t agree you have the right to request mediation. A government employee will sit down with you and your trustee to try and work out the surplus number. If you still can’t come to an agreement you have the right to make your argument in Court.

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