Surplus earnings when bankrupt in Canada and paying spousal and little one help

Be aware: the query on this article comprises outdated surplus earnings limits. Click on right here to evaluation the up to date limits.

Query: My earnings is $3200 take dwelling monthly, I’m separated from my spouse however I pay her $500 monthly spousal help and $815 monthly in little one help, how would the excess earnings work for this case? Are they my dependants? or is my threshold nonetheless $2,355 for a single particular person?

Reply: For the reason that kids and your ex-wife aren’t dwelling with you, they don’t seem to be thought-about dependants for the aim of calculating surplus earnings whereas bankrupt in Canada.

Nevertheless, the quantity you pay in court docket ordered little one help and spousal help is used to cut back your web earnings.

In your instance, utilizing the 2022 surplus earnings threshold numbers, your trustee would take your take dwelling pay of $3,200 monthly and deduct the spousal help of $500 and the kid help of $815 that you simply pay every month, for a web earnings of $1,885.

Since $1,885 is beneath the brink of $2,355 for a single particular person, you wouldn’t be required to make surplus earnings funds.

NOTE: Every month that you’re bankrupt you might be required to submit proof of your month-to-month earnings (your paystubs), and proof that you’ve got paid your spousal and little one help (except it’s deducted straight out of your paycheque; if not, proof of fee within the type of a receipt out of your ex-wife or another proof could be required).  Primarily based on that proof every month your trustee calculates your common web earnings for surplus earnings functions, and determines the quantity you might be required to pay.  If you happen to don’t submit proof of help funds, you don’t get the deductions out of your earnings.