Surplus Income
I get paid bi-weekly and bring home under the allotted $2500/month. Four times a year I get paid more due to a wage grant. Does this automatically put me in the surplus income category (paying for 21 months) or can I pay $175/month for 9 months and submit half of the grant money when I receive it?
Posted from: Ontario
Surplus income doesn’t work that way – you are either over or you’re not. For the first 6 or 7 months of your bankruptcy you are required to submit statements of income and expense to your trustee. In month 7 your trustee averages the statements and if your average monthly income is more than $200 over the government threshold for your size of household then your bankruptcy is extended to 21 months and you are required to pay surplus on the average x 21 months. If your average income is under the threshold plus $200 limit then your bankruptcy will run 9 months and no surplus is payable.
You should really call your trustee and discuss your concerns with them…