Surplus Income Limits for 2023

Understanding the New Surplus Income Limits for 2023 in Canada

 

Family Size Income Threshold
1
$2,543
2
$3,165
3
$3,891
4
$4,725
5
$5,359
6
$6,044
7
$6,729

 

The financial landscape in Canada is dynamic and ever-changing. One of the critical elements that individuals navigating through bankruptcy need to understand is the concept of surplus income. The Superintendent of Bankruptcy Canada revises the surplus income limits annually to account for inflation. This article delves into the updated surplus income limits for 2023 and explains how they impact individuals filing for bankruptcy.

The Concept of Surplus Income

Surplus income is a term used in bankruptcy proceedings to denote the amount of income that exceeds the government-established threshold. This surplus is subject to contribution into the bankruptcy estate, which is then distributed to creditors. Here’s a closer look at how it works.

Calculation Approach

The calculation of surplus income involves a comparison of an individual’s net income against the surplus income limits. The net income is calculated by subtracting allowable expenses, such as childcare or medical expenses, from the total income.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.