| Question: |
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Given the following expenses for a family of four in
Alberta, two adults, a 4 year old and a 2 month old, what income if any will
be garnished during bankruptcy?
Our expenses are as follows:
rent $875, Hydro $125, Gas $60, Public Transportation, $100, Groceries and diapers, $600, Clothing, $150, Phone $75, AB Health $65, Blue Cross $112 for a total of $2162 not including any entertainment or kids activities.
It is anticipated that our gross monthly income would be about $5,416 (or$3,700 net) How much of this $1500 would be considered excess? We have no savings, nor do we have a home, so without this extra money it would seem that even bankruptcy couldn't let us get back on the right track again after a failed small business.
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| Answer: |
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The Bankruptcy and Insolvency sets out a standard level of income depending on the size of your family. For a family of 4 the level is $2807. The difference between this number and your net income of $3700 is approximately $900. 50% of this amount or $450 is calculated as surplus and this must be paid to the Trustee for the term of the bankruptcy.
There are other factors that can affect this calculation so you would need to talk to a Trustee regarding this and also other options that might be available.
To obtain a free assessment of your financial concerns, you should contact a Trustee in your area by looking in the yellow pages under "Bankruptcy".
If you have any further questions or want to come in for a free assessment to our office, please call or email me using the information below.
Shane Brenneis
phone: (403) 298-1575
sbrenneis@collinsbarrow.com
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