If you have been thinking about filing for bankruptcy and have been doing your research, then you have definitely heard about surplus income.
The government has set net monthly income thresholds for a person or a family to maintain a reasonable standard of living in Canada. Every dollar that a bankrupt family makes above the level set by the government is subject to a Surplus Income payment of 50% while a person remains bankrupt, so it’s the surplus income in bankruptcy in Canada that increases the cost of bankruptcy in many cases.
If you know that you may have surplus income in a bankruptcy, you may want to consider filing a consumer proposal.
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