Does The Surplus Income Calculation And Monthly Income And Expense Reporting In

2011-06-09

Hello, The Directive (11R2) in the Bankruptcy & Insolvency Act indicates that "it is necessary to establish the earnings and expenses of both the bankrupt and the bankrupt's family unit.  The bankrupt must disclose the earnings and expenses of each member of the family unit by providing the Trustee with monthly income and expense statements for the entire period of bankruptcy." It also provides some clarity as to what constitutes a family unit: "in addition to the bankrupt, any persons who reside in the same household and who benefit from either the expenses incurred or income earned by the bankrupt, or who contribute to such expenses or earnings....." The Directive suggests that your daughter's income should be reported.  This has always been an area of concern for Trustees and debtors alike in applying the surplus income Directive.  It is recommended that you discuss your particular situation with the Trustee administering your bankruptcy. Brad Milne, CIRP Brandon, Manitoba