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regular diasbility payments exemption

I am a resident of Quebec and I receive a periodic long term disability payment every month. According to what I read, in Quebec this is an exempt asset if I go bankrupt, so how then can it be used to calculate my income if it is exempt? Is my income effectively 0 then if this is my only source of income?

Posted from: Quebec

One Response to “regular diasbility payments exemption”

A licensed trustee said...

I think you may be confusing two distinct elements of the Bankruptcy and Insolvency Act. The first relates to ther your disability benefit – it is an asset that is exempt from the bankruptcy process. That means your trustee cannot seize and sell it for the benefit of your creditors. (ie the benefit cannot be turned into a one time cash payment by your trustee).

The second element relates to the monthly income test and something called Surplus Income. The amount you receive every month for your disability WILL be included in this calculation as this calculation includes income from any/all sources, including disability benefits.