The Bankruptcy and Insolvency Act and the Directives and Rules set out by the federal government establish a monthly income guideline standard, which determines a person’s income sharing requirement while bankrupt. The amount each bankrupt can earn before they have to share something with their creditors, depends on the size of one’s family. Any income earned by you over and above the federal government income guideline standard, must be shared equally with your creditors.
For example, if your monthly income exceeds the monthly guideline limit by $200.00, you are expected to pay ½ of that, or $100.00 into your bankruptcy estate. In essence, the more you make, the more you are expected to pay into your bankruptcy estate and share with your creditors.
For more information regarding the federal government income guidelines, and how much you would be expected to pay into a bankruptcy estate if you were to go bankrupt, please do not hesitate to contact us, either by giving us a call or by using the “Contact Us” feature located in the upper right hand corner of each page of this website. We will be happy to provide you with a complete summary of the income guidelines and how they will affect you or your family.