My husband and I are considering bankruptcy here in Alberta. My question is...accroding to the person that I talked to on the phone we would have to pay to them $400.00 / month for the 9 months. That would leave us with about $500.00-$600.00 extra not including food, gas, entertainment ect a month. Would we be able to put this in a savings account or would they take it? Another question that I have is, my husband may be getting a layoff in about a week or so; if we file prior to that, would they look into what we are paying them and lower our payment if we were having trouble? I also need to know that if they do a layoff with my husband and we are in bankruptcy, will they take the lump sum that is paid out to him prior to unemployment kicking in?

During the 9 months of bankruptcy you must report the family income and expenses, and pay surplus income, to the Trustee. Surplus income is a percentage of net income that exceeds the Superintendent's Standard, a level of income set by the Government for each size of family. The $400 quoted to you is likely the amount based on information you provided to the Trustee. If your income increases or decreases the payment will go up or down. Any lump sum you receive would be considered income during the bankruptcy. Finally, how you spend your income is up to you and you are able to have a savings account.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca