Canadian · Bankruptcy
Bankruptcy surplus income calculator.
See whether a bankrupt owes surplus income payments, and how much, using Directive 11R2-2026. It is the same method a Licensed Insolvency Trustee uses, including the worked example in the Directive.
The 2026 monthly standard is $2,716 for one person, $3,381 for two, $4,157 for three, $5,047 for four, $5,724 for five, $6,456 for six and $7,188 for seven or more. Surplus under $200 a month means no payment; at $200 or more you pay 50%.
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Surplus income
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How surplus income is worked out
Under BIA s. 68 the Superintendent sets, by directive, the standards for deciding whether a bankrupt has surplus income and how much they pay into the estate. Directive 11R2-2026 tells the trustee to start with the family unit's total monthly income, take off statutory remittances and mandatory deductions (or business expenses for the self-employed), take off non-discretionary expenses, and subtract the standard for the family size. Non-discretionary expenses named in the Directive include child support, spousal support, child care, expenses related to a medical condition, court-imposed fines and certain employment-related expenses.
If the result is less than $200 a month, nothing is payable under the Directive. If it is $200 or more, the bankrupt pays 50% of it, scaled to the bankrupt's portion of the family unit's available income. This tool applies the $200 test to the family surplus before that scaling; the Directive does not spell out a different order, but your trustee makes the final call.
| Persons in family unit | 2026 monthly standard |
|---|---|
| 1 | $2,716 |
| 2 | $3,381 |
| 3 | $4,157 |
| 4 | $5,047 |
| 5 | $5,724 |
| 6 | $6,456 |
| 7 or more | $7,188 |
The OSB bases the standards on before-tax Low Income Cutoffs for urban areas of 500,000 or more, adjusted by 2.16% for expected 2026 consumer prices. The Directive was issued on March 27, 2026 and replaced Directive 11R2-2025.
Worked example from the Directive
A family of two: the bankrupt has $3,300 of available income and the other member $1,000, so the family has $4,300. The standard is $3,381, leaving $919. The bankrupt's share is 3,300 / 4,300 = 76.74%, so $919 × 76.74% = $705.24, and 50% of that is $352.62 a month. Enter those numbers above to reproduce it.
Surplus income payments run until discharge: a first bankruptcy is discharged automatically at 21 months when payments are required, and a second at 36 months (BIA s. 168.1(1)). The payments are not a separate debt; they go to the estate.
Sources, read 16 October 2026: OSB - Directive No. 11R2-2026, Surplus Income, Justice Laws - Bankruptcy and Insolvency Act, OSB - Considering bankruptcy.
Frequently asked questions
What is surplus income in a Canadian bankruptcy?
It is the part of the bankrupt individual's income above what is needed to maintain a reasonable standard of living, measured against the standards the Superintendent sets (BIA s. 68(2)).
What is the surplus income threshold for one person in 2026?
The 2026 standard for a family unit of one is $2,716 a month under Directive 11R2-2026.
Do I pay surplus income in a consumer proposal?
The Directive applies to bankrupts. A consumer proposal is a negotiated offer to creditors, so what you pay is set in the proposal rather than by this formula.
What if my family has more than seven people?
The Directive lists one standard, $7,188, for seven or more persons and gives no further increase.
Estimate only — not legal advice
Estimate only. This tool is not legal, financial or insolvency advice. A Licensed Insolvency Trustee decides the figures that apply to you. Figures follow OSB Directive 11R2-2026 and the Bankruptcy and Insolvency Act and General Rules as published on 16 October 2026; they change, so confirm them. Nothing you enter is sent anywhere or stored.