I am trying to base my future budgets of our household income on many different circumstances eg. try to manage debt, bankruptcy or orderly payment ect. my spouse and I are considering bankruptcy in our options as a last resort but possibly as our only choice after a failed small business. I have three questions for you!

1. I am currently authorizing Revenue Canada to use my Child Tax Credit and GST (personal) to offset a debt I owe to my payrole account. If I declare bankruptcy will they continue to do this even if that debt is included in the bankruptcy? Does a trustee take this into consideration when determining excess income if they should choose to keep taking these payments?
   
   
2. Is the $2807 family of four standard of living the same in BC as it is in Alberta? We are considering a job opportunity in Delta.
   
   
3. Our net income is 3704 per month, leaving an excess of P of $900.00 to be given to the trustee. Assuming the cost of about $300.00/month for the bankruptcy fees for my spouse and I, does this come out of the basic standard of living amount(2807) that we keep, or the P of our excess income - how exactly does that work?

Thanks so much for your help! This is a wonderful tool for decision making and future planning. Should a bankruptcy be our only choice we will look forward to seeking your further assistance!

In response to your questions:

1. Revenue Canada can still take the GST but you should start receiving the Child tax benefit again. Only income received by you is included in the surplus calculation.
   
   
2. The standard levels are for across Canada
   
   
3. You are required to pay 50% of the surplus to the Trustee. Your bankruptcy fee would then come out of these funds paid into the estate. You would not be required to pay extra funds on top of this.

Shane Brenneis
phone: (403) 298-1575
sbrenneis@collinsbarrow.com