Does Vacation Pay Count towards Surplus Income Calculations?

This article from Bankruptcy Canada’s Licensed Insolvency Trustee will answer the question “Does Vacation Pay Count towards Surplus Income Calculations?”

Part of your duties when you file bankruptcy is to report your income on an Income and Expense Statement each month and send that form to the trustee.

All your income has to be confirmed by pay stubs etc.

Vacation pay is considered income and must be reported to the trustee.

Note on the Income and Expense Statement the list of types of income a bankruptcy must report:

Does Vacation Pay Count towards Surplus Income Calculations?

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Does Vacation Pay Count towards Surplus Income Calculations?

It is possible for you to take a vacation when you go bankrupt although you will be required to include any vacation pay in your reporting to your Licensed Insolvency Trustee as part of the calculation towards your surplus income payments.

If your vacation pay increases your income over a certain level you will be required to make surplus income payments, which will increase the time you will be in bankruptcy, and therefore also the cost of your bankruptcy.

Your income is averaged over the length of your bankruptcy, so if you have one month of very high income it will be set off over the other months of lower income.

Our bankruptcy calculator will calculate the exact cost of your bankruptcy and how long you will be in bankruptcy.

Canadian Bankruptcies

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What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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