November 23rd, 2008 by Questions
My spouse may have to file for bankruptcy and does not work. How is the surplus income work then. I can not find an example and I do not owe the debt and did not go bankrupt.
Posted from: Alberta
November 24, 2008 at 10:11 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
The surplus income calculation is essentially a formula that must be applied to everyone who files for bankruptcy. This formula is based on the total income of a household, subtracts out an amount that is set based on the number of people in the household. The difference is referred to as surplus and must be divided by 2 to determine the payment.
The biggest trick is once you have determined the payment, this is based on the assumption that both income earners are filing bankruptcy, which they aren’t so we need to adjust the payment by multiplying that figure by the bankrupt’s percentage of the household income.
You can find more information on this at the following link: http://www.bankruptcy-canada.ca/bankruptcy/surplus-income-calculation.htm
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