Many people I meet with are concerned that if their wages increase during their bankruptcy, they will have to pay more than originally expected to their creditors.
While you’re in bankruptcy, you will be under income restrictions and must do monthly income and expense reporting to the trustee in bankruptcy that you have filed with. There are standards set out by the Superintendent of Bankruptcy stating the allowable net income level based on the number of people in the family.
The trustee in bankruptcy will determine any other allowances (i.e. alimony/support payments or daycare) based on the bankrupt’s personal situation, and monitors and collects funds, for the benefit of creditors, from any earnings above the Allowed Living Allowance. Subject to these restrictions, the earnings of a bankrupt after the start of a bankruptcy, such as wages and salaries or commissions, belong to the bankrupt person and are not interfered with by the trustee in the ordinary course of events.
