March 7th, 2009 by Questions

If my spouse files bankrupt is it law that i disclose my income also?

Posted from: Ontario


One Response to “spouse”

, A licensed trustee said:

Yes and no. The person that files for bankruptcy is required to disclose the total household income. As a spouse you aren’t required to tell them, BUT if you don’t then the trustee has the right to “assess” what they reasonably think your income to be. Whenever a trustee is required to do this, we err on the high side – in other words, if the person that filed for bankruptcy can’t tell us what the other incomes in their household are, trustees are allowed to “guess” and we always guess high…

This may sound unfair to you, but the purspose of the Bankruptcy and Insolvency Act is to allow the honest, but unfortunate debtor a fresh start – at the same time keeping in mind the rights of the creditors. The surpus income payments are one of the Acts balancing features – if you want relief from the debt you have to follow the rules.

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