Should My Non-Bankrupt Spouse Divulge his or her Income to the Trustee?
Bankruptcy Canada – Should My Non-Bankrupt Spouse Divulge his or her Income to the Trustee?
Your spouse who is not considering filing for bankruptcy does not have to divulge their income if they so choose not to, but in certain cases it might be beneficial if your spouse who is not going bankrupt divulges their monthly income to your Licensed Insolvency Trustee (LIT).
Your working spouse who is not filing bankruptcy will still have their income used to calculate your monthly bankruptcy payments by the Licensed Insolvency Trustee.
Alternatively, your non-bankrupt spouse may refuse to divulge their income to the bankruptcy trustee, although the trustee will then calculate your monthly payments using 50% of the Superintendent’s standar exemptions based on family size. Your spouse’s income won’t be used in the bankruptcy cost calculation, although they will be counted as a member of the family unit.
You may speak with your LIT (Licensed Insolvency Trustee) about whether your non-bankrupt spouse divulging their income will increase or decrease your payments and which choice is the best for you. Of course, the non-bankrupt spouse can always choose to refuse to divulge their income if they so choose.
Our bankruptcy cost calculator can also be used to determine the cost of your bankruptcy with your spouse divulging their income, or without your spouse who is not going bankrupt divulging their income.