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Bankrupt and Pregnant

My husband and I are filing bankruptcy for the 1st time and we`re going to have surplus income. We recently found out that we`re expecting our 2nd child. This is going to cause us to not have any surplus income. Does this mean that we will get discharged early or are we still in for the 21 months? Also while we`re pregnant are we considered still a family of 3 or is our unborn child included as a dependent?

Posted from: Ontario

One Response to “Bankrupt and Pregnant”

A licensed trustee said...

Congratulations on the baby – unfortunately, until the baby is born, you can’t claim them as a deppendant (ie you are still a 3 person family).

The decision on whether or not your bankruptcy will be extended from 9 to 21 months will be made in the 7th month of your bankruptcy. If in the first 6 months your average hosuehold income is $200 (or more) higher than the threshold for a family of 3 then your bankruptcy will be extended. If the average is less than that then it will not be extended. It’s simple math.

Discuss all of this with your trustee if it is not clear. When your baby is born the family threshold will be increased from that date forward.