If you’re considering bankruptcy, you may hear the term:
“Surplus income.”
Here’s what it means.
How It Works
The government sets income thresholds based on:
- Household income
- Family size
If your income exceeds the limit, you must pay a portion into your bankruptcy estate.
Why Does It Matter?
Surplus income can:
- Increase monthly payments
- Extend bankruptcy from 9 months to 21 months
It’s Based on Net Income
Trustees review:
- Pay stubs
- Household earnings
- Living expenses
Every case is calculated individually.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.