Surplus Income In A Bankruptcy

2011-03-28

The Office of the Superintendent of Bankruptcy publishes a guideline or table each year that calculates your surplus income payments in a bankruptcy.  The table is the same for all provinces within Canada.  Only the bankruptcy Courts could vary this payment.   In 2011 for a family of 3, the guideline amount is take home family income of $2,948.  And the definition of this income is:                 Net paycheque     Plus:  child support income     Plus:  revenue or income of any other source     Less:  child support or alimony payments     Less:  expenses related with a medical condition     Less: student loan interest     Less:  court fines in the process of being paid     Less:  babysitting for work or school     Less:  tax deductible work expenses   In your situation, it sounds like it is your net take home pay + child support.   In your case, you are bringing home $3,450 per month.  The guideline this year is $2,948 so you would be defined to have surplus income of $502 each month.  If you file for bankruptcy, you are required to pay 50% of your surplus income, or $251 each month.  If you are a first-time bankrupt this would be for 21 months total;  a second-time bankrupt would be for 36 months total;  third or more time bankrupt would be at the discretion of the court with the minimum likely be 36 months.   If you have any questions regarding this calculation, do not hesitate to contact me or one or our Trustees in your area.   Donna Carson, CGA, CIRP, Trustee Calgary and Central Alberta regions 1.877.500.0792      [email protected]

Latest Blog Posts

2025-04-25

Understanding debt collection in Canada: Protecting your financial health

Olivier Boyd

Debt collection can be a daunting experience for many Canadians. Navigating the process alongside MNP’s team of experts can help you better understand how it will impact your credit score and gain the knowledge needed to maintain your financial health well into the future. 

Read More

2025-04-25

Top five mistakes to avoid when considering filing for bankruptcy

Bankruptcy

Filing for Bankruptcy is a significant decision that can provide a fresh start for Canadians overwhelmed by debt. However, it’s essential to approach this process with caution and awareness to avoid common pitfalls and make informed decisions to protect your financial future. 

Read More

2025-04-24

How to rebuild your credit after a Consumer Proposal

Tina Powell

Filing a Consumer Proposal can feel overwhelming, but it’s not the end of your financial journey.

Read More

Consultation icon