Understanding Form 65: Monthly Income and Expense Statement

Understanding the Purpose of Form 65: Monthly Income and Expense Statement

Form 65 is an official document used in Canada under the Bankruptcy and Insolvency Act. Its primary objective is to provide a comprehensive overview of a bankrupt debtor’s monthly income and expenses, as well as the financial situation of the debtor’s family unit. This information is essential for the Licensed Insolvency Trustee (LIT) to assess the debtor’s ability to contribute to the bankruptcy estate and ensure compliance with legal obligations.

The form captures detailed data about income sources, monthly expenses, and any amendments to previously submitted financial information. It helps the Trustee determine whether the debtor is making appropriate payments to the estate and if their financial obligations align with legal requirements.

Preparing Your Submission: Key Sections of Form 65

1. Income Details

The form requires you to declare all sources of income for yourself and your family members. This includes employment income, pensions, child and spousal support, government benefits, and other income streams. For each source, you must specify the amount and whether it is exempt from the bankruptcy’s legal operation.

If any family member has refused or neglected to disclose income, you should indicate this in the comments section, providing relevant details. The total net monthly income for the debtor and the family unit is calculated to assess available funds.

2. Non-Discretionary Payments

This section covers mandatory payments such as child or spousal support, medical expenses, fines, and employment-related costs. Accurate reporting ensures that the Trustee can evaluate the debtor’s disposable income after these obligations are met.

3. Expenses of the Family Unit

The form prompts you to itemize monthly expenses across categories such as housing, personal needs, transportation, insurance, and other living costs. Providing detailed figures helps determine the family’s overall financial health and surplus or deficit after expenses.

4. Calculating Surplus Income and Payments

Once income and expenses are documented, the form calculates the available monthly income for the debtor and the family unit. It also assesses the debtor’s contribution to the estate, including any surplus income obligations mandated by the court or the Act.

Filing and Submission Process

Form 65 can be submitted either in paper form or electronically via the standard digital platforms used by the Office of the Superintendent of Bankruptcy Canada. When submitting electronically, ensure that your contact details are included as per the instructions in Form 1.1.

It is crucial to complete the form accurately and thoroughly, as incomplete or incorrect information may delay the bankruptcy process or result in legal consequences. If your financial situation changes after submission, you are required to file an amended form, clearly indicating the nature of the changes and providing updated details.

Follow-Up and Review

The Licensed Insolvency Trustee reviews the submitted Form 65 to verify the debtor’s income and expenses. This review influences the amount of surplus income payable into the estate and ensures that the debtor’s contributions are fair and compliant with legal standards. The Trustee may request additional information or clarification if necessary.

Debtors should keep copies of all submitted forms and supporting documents for their records. Regular communication with the Trustee ensures transparency and smooth progression through the bankruptcy proceedings.

Contacts and Additional Support

If you have questions about completing Form 65 or the submission process, contact your Licensed Insolvency Trustee directly. They can provide guidance tailored to your specific situation and ensure that your financial disclosures meet all legal requirements.

Remember, accurate and complete reporting on Form 65 is essential for a fair and lawful bankruptcy process. Take your time to prepare the form carefully and seek professional advice if needed.