If I live out of Canada
I have a contract job in the foreign country (in the Middle East), and I am going to file the bankruptcy in Ontario, Canada. Is there still the income threshold for the person living out of Canada and how it will be calculated?
Yes there is a still an income threshold regardless where you are currently living. If living outside of Canada, these funds will be converted to Canadian dollars and then the guideline will be applied.
The allowable amounts are as follows
1 person in household 1,755
2 people in household 2,194
3 people in household 2,729
4 people in household 3,303
5 people in household 3,693
6 people in household 4,082
7 or more in household 4,471
As an example, a single person in 2006 is allowed to have take-home pay each month (income after taxes) of $1,755. For every dollar their income exceeds this limit in a month they are required to make a contribution of half of the amount they are over in form of a surplus income payment.
If that person earned $1,955 in a month, they are $200 over the limit, so they would be required to contribute an extra $100 to their bankruptcy estate for the current month. (If you are more than $1,000 over the limit, the penalty increases to 75% of the amount you are over).
Each month during the bankruptcy process the bankrupt submits copies of their pay stubs and proof of other income to the trustee, and the trustee calculates their surplus income, and the bankrupt contributes the required portion.
For a more detailed explanation on surplus income calculation , or for more information on how much surplus income you would be required to pay during bankruptcy process, please licensed trustee in your area.