Surplus Income

September 24th, 2007 by Questions

A bankrupt person`s monthly income is just about the threshold for his family unit (plus or minus $200). At the end of the 3rd week of July his employer gives him his 4 weeks vacation pay in one single payment. This payment is supposed to cover the las week of July and the first 3 weeks of August. As you can see, it appears that in July his monthly income is way above his monthly limit and August will be way below that. Will there be a recognition of that situation when dealing with surplus income?


One Response to “Surplus Income”

, Barton Goth GCO Bankruptcy Trustees said:

The way the trustee’s office will deal with this is they will average it out over the entire duration of your bankruptcy (i.e. 9 months) and if it is significant enough to increase your average income above the threshold you will have to pay the respective amount of surplus.

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