Living Expenses
During our initial consultation, we were given a figure of $2141 (two person family)to live on a monthly basis should we go bankrupt. Anything above that amount would be deemed available for disbursement to the creditors. Does that figure include paying for ongoing secured loans such as mortgage, car loan, etc. My mortgage and taxes would consume $1700 of that $2141. In addition, the trustee had a choice using the 50% method or 75% method of determining what will be available to the creditors vs. my wife and I. Who determines what percentage should be used.
You pay a penalty of 50% of the first $1,000 you are over the limit, and then a penalty of 75% of the rest. The limit is based on your income, regardless of your expenses. I suggest you discuss these strategies with your trustee. You may need to consider filing a consumer proposal.