regular diasbility payments exemption
November 22nd, 2008 by Questions
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?
thanks
Posted from: Quebec
One Response to “regular diasbility payments exemption”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
November 23, 2008 at 9:57 pm, 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.