Unemployed Bankrupt and Surplus Income
I have a question about the surplus income for a family unit of 4. I am a stay-at-home mom and will likely need to file for bankruptcy alone (i.e. not joint with spouse). From what I understand, all income has to be reported on the surplus income sheet and it is then prorated. My spouse makes about $4000 net a month and I of course make nothing. Since he is the sole provider, will he be expected to hand over any surplus above the rate set for a family of 4, or since I am the only one filing bankruptcy will there be no surplus? Thanks
No, he will not. Make sure you understand exactly how the surplus income calculation works – if you are receiving the child tax benefit, or support from a previous spouse or any other form of government allowance this income will be attributable to you and therefore a portion of the surplus income will be attributable to you too.
As part of the consulation process most trustees will show you how the surplus income calculation will be applied to your situation.
In addition, even if none of the surplus income is attributable to you (because you have no income) you will probably still have to make some form of monthly payment to cover the administrative cost of filing bankruptcy. Again, this is something to discuss with your trustee before you file.