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Home / Surplus Income Limits Directive For 2019
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Surplus Income Limits Directive For 2019

Pen on Folio
  • March 18
  • By: Michael Krieger
  • Category: Bankruptcy Articles
  • Tags: Bankruptcy, Legal, Technical
  • Date: March 18, 20192019-03-25T17:10:32-04:00
    • 44034

The Office of the Superintendent of Bankruptcy has just issued their 2019 surplus income directive, setting the surplus income limits for 2018. The full text can be found at OSB Directive 11R2-2019 which includes the new 2019 surplus income limits. The surplus income directive comes into force on March 18, 2019 and applies its surplus income limits to all calculations of surplus income made by a Trustee or the Court after that date.

What is the surplus income directive for 2019?

The surplus income directive for 2019 defines the amount that a bankrupt must pay from their future income during their bankruptcy. The calculation is influenced by the bankrupt’s income, the number of people in the bankrupt’s household, as well as the size of the bankrupt’s family. A bankrupt earning more than the standard set by the 2019 surplus income directive will have to make additional payments to the Trustee. Moreover, bankrupts who are required to pay surplus income will be eligible to be discharged from bankruptcy 12 months later than those who don’t have to pay surplus income. A first-time bankrupt with surplus income would be eligible to be discharged after 21 months and a second-time (or later) bankrupt would be eligible after 36 months (instead of 9 and 24 months).

New standards determine the surplus income payment a bankrupt in 2019 must make

The biggest change in the 2019 surplus income directive is that the the household income standards (surplus income limits) used to calculate surplus income have been updated.

The surplus income calculation is standard across all licensed insolvency trustees and the Court. The directive determines what monthly payments a bankrupt must make from their income each month until they would be eligible for an automatic discharge. Each year, the OSB updates their standards to reflect changes in the cost of living across the country, particularly inflation.

The surplus income limits for 2019 are:

Number of PersonsStandard (2019/2020)
1$2,203
2$2,743
3$3,372
4$4094
5$4,644
6$5,237
7+$5,831
Superintendent’s surplus income limits, 2019

How do you calculate surplus income?

We have updated our surplus income examples which outlines how to calculate surplus income. Surplus income is just one component used to estimate the cost of bankruptcy. If you have any questions about calculating surplus income and how it may impact your bankruptcy, give us a call at 1 (844) 508-8088 or contact us.

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Michael Krieger
Since 1999, Michael has devoted his life to helping honest individuals and professionals attain their goals of financial recovery, free of their debts. Through proposals to and creative arrangements with creditors, bankruptcy, or financial counselling, he brings his decades of insolvency experience to assist Canadians in getting a fresh start.Michael has built his firm on the belief that debt doesn’t just impact your pocketbook. Debt unsettles every part of life- from relationships with family and friends, mental health, physical health and more.

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