Child Support Payments As Income In Bankruptcy in Ontario

| Category: Surplus Income
Category: Surplus Income

Question: I am thinking of claiming personal bankruptcy. I have two children and at this time I am not receiving any child support from their father. If I claim bankruptcy and he then starts paying child support how does this affect me?

child support income bankruptcyAnswer: The amount you are required to pay when you declare bankruptcy in Ontario is based on your family size, and your family income.  If your income increases while you are bankrupt (in your case because you start receiving child support), it is possible that you would be required to pay more in your bankruptcy.

You can learn more about surplus income payments in bankruptcy, and then contact a licensed bankruptcy trustee to do the calculation to determine if child support would increase your bankruptcy payments.