Surplus Income In A Bankruptcy

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      donna.carson@mnp.ca