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Surplus Income

If my income is above the surplus limit, and because of it, the term of my bankruptcy is much longer than the 9 months. What happens if my employment changes and I am no longer in above the limit? Will the terms of my bankruptcy change to reflect this or is it set from the start?

Posted from: Manitoba

One Response to “Surplus Income”

A licensed trustee said...

When you file for bankruptcy you are required to submit statements shwoing your icome and expenses for the first 6 or 7 months of the procedure (for the first 21 or 22 if it is a second bankruptcy). In month 7 your trustee will determine your average income for the first 6or 7 months and based on the average will determine if your income is above or below the surplus income number. If you average income is over then another 12 months is added to your bankruptcy. If it is under then your bankruptcy will end in 9 months.

If your situation changes after the trustee has done thier calculation you need to go and speak to your trustee. They’ll review your options and then you can decide what you want to do.