What About My Wages During Bankruptcy?

How Bankruptcy Impacts Your Salary

Many people considering bankruptcy are worried that the Trustee will tell them how to spend their money or will seize their wages during the bankruptcy.

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Fortunately, the Trustee will not tell you how to spend your available wages (you will be required to pay the Trustee at least $200 a month for 9 months to cover the basic costs of filing bankruptcy), nor will they seize your wages from your paycheque. In some cases, a debtor will be required to pay “surplus income” payments to their Trustee, although any other available wages will be yours to use as you see fit. What About My Wages During Bankruptcy?Bankruptcy will also immediately stop a wage garnishment, which can free up your wages for spending on your rent, food, and towards your car payments. There are standards supplied to the trustee by the Superintendent of Bankruptcy which instructs the trustee to collect funds, for the benefit of creditors, from any earnings above what is reasonable for the number of people in the family and the bankrupt’s personal situation. To find out how much you would have to pay and how long you will be in bankruptcy go to our Bankruptcy Calculator.


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I was feeling overwhelmed by my credit debt, constantly receiving calls and letters from debt collectors, which caused a great deal of stress. It seemed like there was no way out of this situation. However, I discovered Bankruptcy Canada while listening to my local talk radio station. This organization proved to be friendly, empathetic, knowledgeable, and professional, with extensive experience in their field.

During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.