How much is my payment?
October 21st, 2005 by Questions
I am going ot be filing for bankruptcy and I understand the system of surplus income, but I can’t seem to find a chart of site that shows how the bankruptcy payment is determined if your household income is below the allowable level. For example, as a family of 5, we are allowed to earn $3606 per month without having to contribute surplus income. What happens if our household income is less than $3606? What would I be required to pay? How is the amount required to pay determined?
Also, my trustee told me that my bankrupcy term would likely be 15 months. I have never been bankrupts before- why would it not be 9 months?
Thanks for your advice!
One Response to “How much is my payment?”
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October 21, 2005 at 8:31 am, A licensed trustee said:
Trustees will generally determine a minimum monthly contribution to your bankruptcy estate to cover the cost of administering the bankruptcy. Once your income goes over the limit set by the government, you will make an additional payment (based on your surplus income). If you have significant surplus income, your bankruptcy may be extended; that may be why the trustee has advised you that the bankruptcy will last for a projected 15 months.
I suggest you ask your trustee these questions, or contact another licensed trustee to get a second opinion.