Is my wife’s proposal payment a non-discretionary expense when calculating my surplus income?
My wife filed a consumer proposal last year which she is currently paying monthly payments towards. I’m contemplating filing a proposal for myself this year.
When calculating my surplus income (where I include family income) do my wife’s proposal payments count as non-discretionary expenses or do they have no impact on the surplus income calculation for myself?
Your wife’s payments on her consumer proposal are not considered to be non-discretionary when you calculate the excess income you have in a bankruptcy.
Non-discretionary expenses are items such as child support, spousal support, child care and medical expenses, which can all be claimed on your income tax return.
Your wife’s consumer proposal payments cannot be claimed on an income tax return.
- Earl Sands, Licensed Insolvency Trustee