If income changes during the bankruptcy, is the amount owing recalculated?
My husband is in bankruptcy, and at the beginning of the bankruptcy, he had a good job, and we were paying around 1200$ a month. He lost his job halfway through his bankruptcy and got a lower paying job. The total amount owing in the bankruptcy has not decreased or been reassessed based on his new income, which is about half of what he was making before. We are paying $900 a month right now, and they want us to increase our payments to $2500. Which would only be possible if I stop paying all of my bills and sell my house. The other option is to remain in bankruptcy for an additional 16 months and pay the $900. I calculate the amount we should be paying based on the formula given on the Alberta bankruptcy website and it came out to just under $330. I feel like I am being taken advantage of, and my husband keeps asking if they recalculated it, they say yes, and then sent us a letter basing what we owe on the original calculation when my husband had a good job. Do you have any suggestions?
The amount that should be paid into the bankruptcy is based on the average of the income over the term of the bankruptcy.
Our Bankruptcy Calculator will calculate this amount for you: