Category Articles: Surplus Income

Surplus income is a calculation made during your bankruptcy that determines how much your payments will be while you are bankrupt and how long your personal bankruptcy will last.

It is defined by the Bankruptcy & Insolvency Act and is based on the concept that the more you make, the more you should have to pay during your bankruptcy. There is a set minimum amount the government has determined you are allowed to keep: this is called the Surplus Income Threshold. If your net income (after certain allowable expenses) is more than $200 above this limit you will be required to make surplus income payments equal to 50% of your surplus income.

While that sounds simple, the calculation can become quite complicated. Read our articles to find out more about surplus income including what is defined as income, how it will affect your bankruptcy and what your alternatives might be if you expect to have significant surplus income payments.