At Grant Thornton Limited in Thunder Bay, Dryden and Fort Frances, we are pleased to announce that we have created an online surplus income calculator for the benefit of people in Northwestern Ontario considering, or currently in, one of the debt solutions that we offer.
“Surplus income” is a concept incorporated in the Bankruptcy and Insolvency Act, which is the legislation that governs bankruptcy and consumer proposals in Canada. In basic terms, the idea is that if you are bankrupt and earning more than enough money to have a basic standard of living, your creditors should be repaid at least a portion of their debt through your wages. Each year, the Office of the Superintendent of Bankruptcy publishes what the standards are for households of various sizes. Your household income is then compared to that each month, and any surplus is determined.
For many in bankruptcy, or considering bankruptcy, this is the most confusing part of the process. The most important thing to remember is that, with the exception of certain “non-discretionary expenses” such as child/spousal support, child care, and medical expenses, your household expenses are largely irrelevant. The calculation is done strictly based on your income, and the Superintendent’s Standards.
As such, it is quite easy to estimate the amount of surplus income that you will have, if you know the income of you and your spouse (if applicable) and the number of people in your household. Just plug this information in to the calculator and it will estimate your surplus income for you. Please note that this is a tool for estimation purposes only and all final calculations will be done in accordance with Directive 11R2 of the Bankruptcy and Insolvency Act.
If you have any questions about how surplus income would apply to your situation, please contact us toll free at 310-8888 to arrange an appointment in Thunder Bay, Fort Frances, or Dryden. Don’t be alarmed if the surplus income calculation results in a high number for you. If this is the case, you may qualify for a consumer proposal, which could result in lower monthly payments.
The Surplus Income Calculator can be found at www.gtdebthelp.com/surplus.