The amount you are required to pay, out of your pocket, when you go bankrupt depends on your income. The concept being, the more you make the more you should pay to your creditors.

The OSB set the standard based on the number of people in the family. The standards are indexed each year to reflect inflation. The 2018 chart has been reproduced below. A Bankrupt must pay 1/2 of their income that exceeds the standard to the Trustee.

Surplus income chart 2018

If a bankrupt's monthly income exceeds the standard, for the number of people in the family, they are required to make surplus income payments.

How much they will be required to pay will be based on their actual income for the period of the bankruptcy.

Your monthly income is reported to the Trustee who will calculate the payment required.

A first time bankrupt is required to pay surplus for 21 months. A second time bankrupt for 36 months.


Surplus income 2018 example chart

Let's assume a single individual with a net take home pay of $3,152 per month goes bankrupt for their first time.

We find the amount under the $3,152 column corresponding to the line for a 1 person family.

We see the amount of $1,000 highlighted.

The Bankrupt has Surplus Income of $1,000 and 1/2 of this amount, $500 is to be paid monthly for 21 months for a total of $10,500.

This is in addition to any proceeds the Trustee receives from the sale of your non-exempt property and tax refunds.

If you disagree with the amount of your Surplus Income payments or you have exceptional circumstances you may request mediation. The OSB has a webpage and brochure detailing the process of Bankruptcy Mediation.