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Going over allowable monthy income while bankrupt

Hello I’m self employed and would like to know if I’m going over the allowable monthy income as an undischarged bankrupt, if i incorporate my business can I just leave the surplus in the company and use it after I’m discharged from bankruptcy in Canada? I would not be director of this corporation.

Thanx,

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One Response to “Going over allowable monthy income while bankrupt”

A licensed trustee said...

No – nice try though.

If you are paid through a corporation your trustee has the right to assess your surplus income penalties based on the corporation’s profitablity as well as your pay. The same applies if you start income splitting in a manner that isn’t concistent with how you paid yourself before you filed or with the real economic value of the work performed.

If you want my advice – keep your life simple and your pay structure straightforward. If you make things complicated your trustee may just decide that you aren’t “an honest, but unfortunate debtor” and perhaps you are manipulating things in manner that you shouldn’t. If that were to happen, things might become “unpleasant” – that’s a coy way of saying “we’ll see you in Court”.