Two People in the Household, One Has Filed Bankruptcy, and They Have a Payroll Deduction for RRSPs

The following is an example of how surplus income calculation would be performed when there are two people in the household, only one has filed bankruptcy, and they have a payroll deduction for RRSPs.

In this example Bob and Carol are a married couple living together. Bob’s take-home pay is $1,200 every two weeks – he would be taking home $1,250, but he has $50 taken off of every paycheque for RRSPs. Carol earns $100 a week working part-time while she continues her education. Bob has filed bankruptcy because the small business he was running failed.

Bob’s surplus income calculation looks like this:

Bob’s income: 2 x $1,200
$ 2,400
Add-back his RRSPs 2 x $50
Bob’s income for surplus
$ 2,500 A
Carol’s income: 4 x $100
400 B
Total household income: =
$ 2,900 C
Less the government threshold
– 2,328
Income over the threshold
Total Surplus income (50%)
286 D
Bob’s portion of income (A/C)
86 %
Bob’s surplus income (D x 86%)
$ 245.96


In this example, Bob would be required to pay an additional $245.96 to his trustee due to the surplus income requirement.