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bankruptcy and surplus income

I will have to pay surplus income payments based on my net monthly salary. Is is possible to have more income tax taken off my paycheck each month to reduce my surplus income?

What happens to the income tax I would recieve back next year if I am discharged before I recieve back that tax return?

Posted from: Ontario

One Response to “bankruptcy and surplus income”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

You could do this, but I would not recommend it. Firstly because it won’t have much of a difference as you automatically lose all your income tax returns for the year of bankruptcy and any previous years.

The other problem is that if the creditors or trustee caught wind of you arranging your finances to reduce your obligation an application would have to be made to court and you would likely have your discharge with held and a pentaly put in place for trying to game the system.