Income threshold
I live in Ontario. I have a 24-years old daughter, who lives separately. I am going to file the bankruptcy. What is an income threshold for the single person in Ontario?
I live in Ontario. I have a 24-years old daughter, who lives separately. I am going to file the bankruptcy. What is an income threshold for the single person in Ontario?
According to the 2006 Superintended Surplus Guideline the threshold for a single person is $1,755.00. This means that if your after tax monthly income is more than this amount you will be required to pay in between 50% to 75% of the difference each month.
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.