Bankruptcy Ontario: Free Information about Bankruptcy in Ontario

Severance Pay after bankruptcy

Posted on Tuesday, October 28, 2008

Question: If I was to get a small severance from the company I worked for before the bankruptcy, would I have to give it up. I don't have another income.

Answer: It would depend on the amount. For example, a single person is allowed to have net income of $1,836 per month before they are required to make additional payments during their bankruptcy. If you got $1,500 in severance and had no other income, you would still be below the limit. Your trustee can give you a more detailed answer based on your specific circumstances.

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