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If someone is a self-employed proprietor, and he has declared bankruptcy, should he calculate his income on the gross or net amount? Someone has just advised me that his Trustee was charging him a monthly fee based on his gross income. Is this against the Bankruptcy Laws of Ontario. Please advise.
Thank you.

Posted from: Ontario

One Response to “Bankruptcy”

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

Technically it is on the net income. But in connection with this it is the duty of the bankrupt to properly disclose his gross income, his business expenses and his tax remittances to his trustee. If the bankrupt reports things improperly it may result in the Surplus being calculated on the gross inadvertently.

The other part of this is the tax remittances. For the debtor to get credit for these tax remittances they need to be sending in the money to the government each month and providing verification that this has been done.