Surplus Income Payments During COVID

Surplus Income Payments During COVID
stevewelker 2.04.2020

I’m bankrupt and I have less income due to COVID, do I still need to make surplus income payments to my trustee?

The Bad News: COVID is affecting everyone in Canada, and people are struggling.

The Good News: The bankruptcy process has always accommodated changes in your income; the more you make, the more you pay, and the less you make, the less you pay.

If your current income is substantially less due to COVID, then you can skip this month’s surplus income payment.

To do this, simply email us at, update us on your current situation, and we’ll delete your next scheduled surplus income payment. If your payment has already been processed by our office, then you’ll need to contact your bank to stop the payment; we’ll let you know.

While we’re here to guide you through your bankruptcy process and make it as smooth of an experience as possible, it is important to keep in mind that we’ll continue to calculate your surplus income based upon the income reports that you submit. We’ll average your good and bad months to determine how much you need to pay. If your income has been reduced due to COVID then skipping a payment shouldn’t be a problem as your overall surplus income obligation will be lower. That said, any surplus income arrears that accumulate will need to be paid prior to your discharge date.

Please note that while non-surplus income payments can also be skipped if necessary, they will need to be caught up on prior to your scheduled discharge to obtain your discharge without delay. If this isn’t possible, our office will work with you, however your discharge may be delayed.

Each situation is unique, so we recommend that you contact our office to discuss your unique personal situation and we’ll do our very best to help.