Tag Archives: surplus income

3 Things to Know about Surplus Income in Bankruptcy

06 Jan 2014

Surplus Income is the name the government has given to the calculation that trustees are required to do when someone files personal bankruptcy to determine what their monthly payments are going to be. It is a mathematical exercise based on a specific set of rules. It is not intended to…

(2) commentsRead more

Over The Surplus Income Threshold? What Happens.

11 Dec 2013

Surplus Income Limit Threshold in Bankruptcy

The actual cost to file bankruptcy is based on two things – what you own and how much you earn. It doesn’t matter how much you owe – you might owe $10,000 or $10 million. It won’t affect the amount you have to pay in order to be relieved of…

(4) commentsRead more

Calculating Surplus Income Step-by-Step

09 Dec 2013

If you’ve read about what goes into determining the cost of your bankruptcy in Canada, you know that one of the factors is something called Surplus Income. Conceptually surplus income in a bankruptcy says that the amount you pay is more if your income is higher. There is a base amount…

(6) commentsRead more

Is an RRSP Withdrawal Surplus Income in a Bankruptcy?

28 Oct 2013

In 2008 the Parliament of Canada amended the Bankruptcy and Insolvency Act to protect your registered retirement savings plan (RRSP) from seizure except for contributions you have made in the last year. This new law was in addition to the protections provided under the Insurance Act of Ontario that protects…

(2) commentsRead more

Do I Have To Disclose My Spouse’s Salary For Surplus Income?

04 Sep 2013

*Please note that this article has been updated with the 2017 surplus income limits Surplus income is calculated based on family income, so all members of the family disclose their income. If the husband is declaring bankruptcy but the wife is not going bankrupt, the husband is still supposed to…

(28) commentsRead more

What If Your Financial Situation Improves During Bankruptcy?

24 Jul 2013

Have you heard the expression, “it’s not over ‘til it’s over?” It applies to bankruptcy in Canada as much as anything else. If you have filed an assignment in bankruptcy and your situation changes for the better, you don’t have to remain bankrupt. You have the right to file a…

(8) commentsRead more

Filing a Consumer Proposal While Bankrupt

29 Apr 2013

What happens if you declare bankruptcy in Canada, and then decide you want to file a consumer proposal instead? Is that possible? Yes, it is, but first let’s consider why you might want to convert a bankruptcy into a consumer proposal in the first place. Bankruptcy is often the logical…

Bankruptcy and Common-Law Partner

20 Feb 2013

Note: the question in this article contains old surplus income limits. Click here to review the updated limits. Question: I understand that filing bankruptcy will not affect my common-law partner because no debts are in her name, however, will my payments for bankruptcy be increased because I am living with…

Surplus Income in Three Pay Month While Bankrupt in Canada

03 Jul 2012

Note: the question in this article contains old surplus income limits. Click here to review the updated limits. Question: I have a three pay month the second month in bankruptcy, and those funds were already earmarked for car repairs. What happens if I can’t pay the surplus income for that…

Surplus income and student loan income question

25 Jun 2012

Question: I am considering filing for bankruptcy in Canada and wanted to know if my spouse’s (who is currently a student at university ) student loan monies are considered to be family income in the calculation for my surplus income? Answer: A loan is not considered income, because it has…