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Bankruptcy Question & Answer Forum - Canada
Author: |
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DM |
Date: |
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October 17, 2005 |
Question: |
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I'm currently employed and make $45,000 gross per year. I have not filed my income tax for 5 years now and I have a debt with a collection agency to the tune of $21000 (approx).
What is the maximum amount of income I can make per year while being bankrupt.
Will my tax debt be covered under bankruptcy and what would happen with the collection agency?
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From: |
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Bruce, Alger & Associates Inc. |
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October 19, 2005 |
Answer: |
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Not trying to be funny, you can make as much as you could before. However, there is a detailed formula for contributing 50% or more of your net after deductible expenses income to your creditors. This formula takes into account your personal circumstances and also allows a number of other deductions. A trustee could tell you exactly how this formula would be applied in your particular case. See Will I lose Everything? on our website for a detailed discussion of Directive r11 and a link to it.
Bruce Alger
phone: (403) 296-2970
balger@alger.ca
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