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surplus income question

I make 2200 a month take a home, if i ask my work to take more taxes from pay cheques so my surplus income does not exceed 200, will i get penalized, and will i get a discharge in 9 months, is it ok to do this at all?

Posted from: Ontario

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One Response to “surplus income question”

A licensed trustee said...

Before you decide to have more taxes taken off your pay, you do know that your tax refunds for the year you file bankrutpcy go to your trustee for the benefit of your creditors, don’t you?

To answer your question, the law allows for normal statutory deductions (taxes, EI, CPP). If your trustee determines that you have asked for additional tax to be deducted, they have the right to “add it back” when doing your surplus calculation. If they did, then you’d get dinged twice – you pay the surplus and you’d lose the tax refund.

It’s okay to want to pay the minimum amount you have to in order to file for bankruptcy, BUT if you try to cheat and get caught it will cost you even more…