Regarding surplus income in a bankruptcy….
What about the months where you have an extra, third paycheck? Say for instance you normally don’t have surplus income…then you get a third paycheck? Will that extend your bankruptcy? Because that doesn’t seem right.
It would seem more logical and fair to just have to pay a bit more in those months.
When the trustee calculated our payments, she took into consideration that I am paid bi-weekly, which would result in two 3 pay months a year. She took my total annual income and divided it by 12 when she calculated the payments. Perhaps it is done differently at different places. It is worth mentioning though.
The trustee will take an average of your surplus income at the 8th month of your bankruptcy and based on that it will be determined how long you will be in bankruptcy. The average of your surplus income will be taken into consideration and split over the 8 months that the trustee is examining your income for surplus income payments.