[schmedlap]

As to the income guidelines, they are set by location, family size, etc, under the Act. A percentage of net income above the permitted amount per month is referred to as "surplus income" and must be paid in to be distributed to proven unsecured creditors. The intent is that a bankrupt, while in bankruptcy, should only be allowed to retain enough each month to provide necessities to themselves and dependents. It would be an affront to the system if undischarged bankrupts were allowed to keep enough to, for example, keep driving a financed late model luxury vehicle - would it not?

If the bankrupt is required to pay over surplus income, and is a first time bankrupt (repeaters are subjected to longer periods), then the minimum time between assignment and discharge is 21 months. The reasoning behind this is that the bankrupt can (whether or not it accords with their own view on this) afford to pay something to the creditors before having all the unsecured debts wiped clean.