What Happens to my Paycheque If I go Bankrupt in Mississauga?

What Happens to my Paycheque If I go Bankrupt in Mississauga?
The other asset you have is your paycheque or income. During a bankruptcy, one of the duties and responsibilities you have is to report your monthly income or take home pay (after tax income) and that of the household you live in. The trustee will require your pay stubs or other evidence to verify the income from all members of the household not just the person who filed for bankruptcy. From this information, the trustee will determine if you have surplus income that will require a payment from you to the trustee for the benefit of your creditors. Surplus Income is a defined term by the Court, who has set certain allowances, depending on the family size, that is believes you need for your expenses such as rent, food, car payments etc. If you make over this allowance then you have surplus and a portion of it, which is based upon your contribution to the household, is payable to the trustee.

The reporting of your income and that of the household on a monthly basis for each of the months you are bankrupt is usually very helpful for most people as they now keep track of the money coming into the household and how they spend it and when. This is reinforced through two counseling sessions you are required to attend during your bankruptcy. Each session is about an hour long and discusses budgeting and the causes of your financial difficulties. These counseling sessions are mandatory to get your discharge in the 9 months and also you must complete them within a certain timeframe.

There are other duties such as filing all outstanding tax returns to the date of bankruptcy. Any debt will be included in your bankruptcy and any refund will be an asset that will come to the trustee for your creditors.

For most people it is the monthly income reporting that requires the most homework and paying of any surplus.

Once you have completed your bankruptcy and obtained your discharge certificate you can start to rebuild your credit. For most people this is in the form of a secured credit card. This is where your limit on the credit card is based upon a deposit of funds you provided. These funds will be used by the credit card company to pay any balance you are unable to pay.

If you are experiencing some financial difficulties and want to discuss this please contact us at 310-PLAN and speak to one of our professional staff. They will review some information with you and will happy to help you understand the bankruptcy process and other options.

Share this: