I Am Living Common Law With A Person Who Is Bankrupt And Pays Surplus Income

Understanding Common Law Living With a Bankrupt Partner

Life can sometimes throw us unexpected curveballs, and financial hardship is one of them. This article aims to shed light on a specific situation – Living Common Law with a person who is bankrupt and pays surplus income amounts each month.

What is Common Law?

Common Law is a term used to describe a relationship where two people live together in a conjugal relationship, without being legally married. The rules surrounding common law relationships can vary, with different legal implications, depending on the jurisdiction.


Bankruptcy: An Overview

Bankruptcy is a legal procedure that allows an individual or a business facing financial difficulties to clear their debts and make a fresh start. However, bankruptcy is not without its consequences. It can affect one’s credit rating, employment prospects, and even relationships.


Surplus Income: What It Means

Surplus income in bankruptcy terms refers to the income of a bankrupt individual that exceeds the limit set by the bankruptcy regulations. This surplus income must be contributed towards paying off the bankrupt person’s debts.


Impact of Bankruptcy on Partners

When one partner in a common-law relationship declares bankruptcy, it can have significant financial implications for the other partner, especially if they share expenses or have joint debts.


Including EI Payments and Student Loans

One common question is whether the bankrupt individual needs to include their partner’s Employment Insurance (EI) payments and/or student loan as part of his income. The answer can depend on several factors, including local laws and the specifics of the bankruptcy agreement.


Including MPI Rebate Cheque

Similarly, questions often arise about whether a Manitoba Public Insurance (MPI) rebate cheque received by a non-bankrupt partner should be included as part of the bankrupt person’s income. Again, the answer may depend on local bankruptcy regulations and the terms of the bankruptcy agreement.


Household Income Calculation

In bankruptcy proceedings, household income is often used to calculate surplus income payments. This calculation takes into account the incomes of all members of the household, including the non-bankrupt partner.


Options and Advice

If you find yourself in a situation where you are living common law with a person who is bankrupt, it is essential to seek professional advice. Understanding your options can help you make informed decisions and protect your financial future.



Living common law with a bankrupt partner can be challenging, but with the right information and advice, you can navigate this situation effectively. Always remember to seek legal advice when faced with complex financial matters.

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