Bankruptcy Question & Answer Forum - Canada

Author:		BK
Date:		December 18, 2005
Question:		My sister filed bankruptcy in August 2005. In January 2005 she seperated from her husband. She has just received a $2000 Child Tax Credit cheque which is for an underpayment from Jan 2005-Dec 2005 (this is because they adjusted her monthly amount from the time she separated). How will this affect her monthly earnings for her bankruptcy? She has two children and I believe she is aloud to make approx $2400/month before the excess goes to the trustee. Her normal monthly income is $1200/month (wages) and $360/month (Child Tax Credit) How much (if any) of the $2000 will she have to remit to the trustee?
From:		Bruce, Alger & Associates Inc.
Date:		December 19, 2005
Answer:		Typically this type of payment is spread out over the term of the bankruptcy and therefore she should talk to her trustee about the actual calculation. Her average monthly income will increase by $222 which means she should likely still be under the threshold. Bruce Alger phone: (403) 296-2970 balger@alger.ca