surplus income and bankruptcy length

February 25th, 2009 by Questions

I don`t mind paying more if I have surplus income, I want to pay as much as I can. But if you have surplus income it can make your bankruptcy last longer, right?
So, if I made $100 or $200 more than the allowable income, is that going to drag out my bankruptcy for more than 9 months?
And things like GST and tax refunds. Obviously those would go towards my debts but do those things also make the bankruptcy last longer?

Posted from: British Columbia


One Response to “surplus income and bankruptcy length”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

You are correct that the more surplus you have, the more likely your bankruptcy will be extended by the court. However the specifics are largley determined by local practices, so you are best to contact a local trustee directly about that.

As for the taxes and GST cheques, these aren’t going to extend the bankruptcy, but you are right that they are lost and will create a bit of a benefit to your creditors.

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