surplus income and tax refund in 9 month bankruptcy period
September 4th, 2007 by Questions
I make take home pay $3290 per month, single, only I, myself file bankruptcy. The question is:
1. how much do I need to pay every month based on my surplus income?
2. In Feb2008, I will get about $10,000CAD tax refund(estimate amount), but I will be still in 9-month period of bankruptcy at that period, so what happen to my income tax refund?
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September 05, 2007 at 12:26 pm, Barton Goth GCO Bankruptcy Trustees said:
Assuming you are reporting an after tax amount and have no non-discretionary expenses you are going to have a fairly significant amount of surplus that will need to be paid. Based on this inframtion I would expect you would be required to make a monthly payment of approx. $746.50.
As for the tax refund, in bankruptcy your tax refund will be lost and used to ultimately create a dividend for your creditors.
However, due to the amount of surplus you have you may want to consider meeting with a local trustee to discuss proposal as you should have more than enough cash-flow to fund it and as a result of yor substantial surplus you may find a bankruptcy to be less straight forward than you anticipate.