Money is always a worry with Bankruptcy, so I would like to talk you through a few of the points to consider around income and Insolvency
Bankruptcy in Australia is always going to be complex and troublesome, specifically because it involves money and people’s livelihoods. A lot of people always ask us how bankruptcy will impact their income, because insolvency is going to limit just how much you can make. When it involves Bankruptcy it is mainly going to consider your overall income and the number of dependants that you have
How is this calculated?
You should understand about Bankruptcy that there are in fact set quantities that you can earn– yes, this indicates that you may not be left destitute, but neither does this mean that you can be making a six figure paycheck and not be paying back bankruptcy debt.
Net income is the pre-tax/ in the hand quantity you gain annually.
A dependant is somebody who lives with you and earns no more than $3,124 each year (regardless of their age).
Can this be raised?
Yes, under some conditions you can get a hardship variant that increases the threshold amount, if you have financial obligations in Australia like health-related, child care, considerable travel to and from work, or a situation where your partner used to be employed but is now not able to support the household income level.
Will my boss be told about this?
No, the advantage about Bankruptcy is that your employer will not be advised when you apply for bankruptcy.
What about child support?
Child support is always considered in insolvency– this indicates that if you get child support, that is not factored in as income. However if you pay child support this will be typically obtained from your net income amount, for instance if you supply $5,000 child support every year and you have no dependents residing with you then your altered net income limit will be $55,332.10.
What about tax-time, do I continue to get money back?
If one of your creditors is the ATO (for unsettled taxes), then your tax refund will likely be taken by the ATO when you are insolvent to contribute towards your tax bill. If you do not have a tax debt then you will retain your tax refund provided that doesn’t take you over your threshold income level caps.
So what is regarded as income?
There are a lot more concerns surrounding income and Bankruptcy – especially because a lot of individuals will justify with what is thought of as ‘income’- if you’re not sure, it’s a great idea to get specialist personal bankruptcy advice in Australia.
Without a doubt some of the most essential features of Bankruptcy is that you ought to get recommendations as early as practical because it will make sure you are taking the best path. It is generally going to be better to be over prepared because when it comes to Bankruptcy knowledge is power, and once you have submitted the documentation it’s far too late to change your decision.
If you believe when it comes to Bankruptcy, your case is more intricate than what is pointed out above, then I would strongly suggest that you get expert guidance in Australia.
If you wish to learn more about what to do, where to turn and what issues to ask about with Bankruptcy, then don’t wait to contact Bankruptcy Advice on 1300 879 867, or explore our website: www.bankruptcy-advice.com.au.