How much will you take from my paycheque?
When I meet with people or talk to them over the phone about their financial situation, the above question is one that is asked quite often.
For those of us in this business,it sometimes comes as a surprise, because a trustee in bankruptcy does not take money from a paycheque.
The bankruptcy/proposal process looks at household income and compares it to the Superintendent of Bankruptcy’s standards. These numbers have been compiled from data across the country and all debtors are required to follow the same guidelines.
If you earn more than the standard for the number of people in your household, while looking at issues like support payments or child care costs or medical expenses, then there is a requirement to pay a portion of that extra amount into the personal bankruptcy or make it available to the creditors in a consumer proposal.
A trustee is able to garnish wages under Section 68 of The Bankruptcy and Insolvency Act, but surplus income payments are expected to be made voluntarily.
If you wish to investigate more on this topic, please see our website at www.hoyes.com and look at Download Application and Surplus Income Worksheet. If you wish to talk to me about your situation in person, please call our London office at 519-435-1500 or 310-PLAN. We can look at various options that would be available to you.
