[Editor's note: If you are looking for the current standards and calculation of surplus income, visit this page first.]
The 2012 Directive of the Superintendent of Bankruptcy on Surplus Income may be found here.
Calculating Surplus Income – Directive No. 11R2 – 2012
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what is Non-Economic-Loss from Workplace safety and Insurance Board classified under in the Surplus Income Laws?
Hello, Susan: NEL payments received during bankruptcy are added to total income in the surplus income calculation, so a portion will be paid to the estate.
If I have more tax taken off of my pay to reduce the surplus income payment payable (effectively making no surplus payable during the course of my bankruptcy)is this an offence or an issue when it comes to my discharge? The way I see it, the trustee will receive a larger post tax refund in the case of my filing in the early part of 2011.
Thank you.
If you look at Subsection 5(2) of the Directive on surplus income you see that only the “minimum statutory remittances” are allowed as deductions from gross income. Accordingly, if you voluntarily increase the tax withheld at source, that increase will not change the surplus income calculation. Additionally, as your question suggests you already suspect, this strategy is clearly aimed at an illegal evasion of the statutory surplus income provisions.
Please feel free to contact me directly with any further questions.
I work at an occupation where I work away from home in other towns when I am on shift. I am paid a daily subsistence amount of $40/day in addition to my wages. My company indicates this subsistence amount on my pay slips, but adds it to the total of my net pay, effectively causing me to have to remit roughly 50% of it as surplus income payments.
Is there a way for this amount to at least partly be qualified as being acceptable as an expense required for employment (as mentioned in Section 5 (3)(f))? Are there any trustee forms that can be used to outline such expenses?
I am just asking as it adds a hefty amount to my monthly surplus income payments and makes it difficult to live out of town for work. I want to keep working to pay as much as possible to my estate, but a little relief for some work expenses would definitely be appreciated.
Hello, Richard:
Ask your Trustee whether they will permit you to include this allowance both as income and as a non-discretionary work expense on your monthly statement of income and expenses. This would have the effect of eliminating such work allowances from surplus income.
Best regards,
Eric
I have a challenging question on bankrupt payment calculation:
For the family of three ,with the Bankrupt income “0″ (for for the period over one year)and the spousal net income 4200, with no joined loans in this case, how much payment required ?
Thank you.
Household income $4200 – Superintendent’s Standard $2948 = Surplus income of household $1252
Bankrupt’s share = $1252 x $0/$4200 = $0. That is, there is no surplus income for the bankrupt.
Best regards,
Eric