Bankruptcy in Australia is a complicated process, and you ought to ensure you get the right suggestions. And when it comes to your income being affected, the answer to the question is maybe. The first thing you need to know about going bankrupt is there is no limit on how much you can earn. However, I will point out that your income is a serious consideration when working through when it comes to Bankruptcy.
The very first thing you need to understand about this area of Bankruptcy is the amount you can earn before you start paying back money to your creditors via your trustee (see table below).
Net income is the pre-tax/ in the hand quantity you earn annually. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).
You can get a hardship variation that raises the threshold amount, if you have costs in Australia like medical, child care, considerable travel to and from your job, or a scenario where your partner used to work but is not able to support the household income.
Some of the informative parts of Bankruptcy is that your employer will not be alerted when you file for bankruptcy. Also, Child support is always taken into consideration in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also thought about, for example if you provide $5,000 child support each year and you have no dependents living with you then your modified net income limit will be $55,332.10.
There are more issues involving income and what is or isn’t thought of as income – if you’re uncertain, it’s a good idea to get skilled advice. The reason you need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases not an economically viable option.
If one of your creditors is the ATO (for unpaid taxes), then your tax refund can be taken by the ATO whilst you are bankrupt to chip in toward your tax bill. If you don’t have a tax bill then you will keep your tax refund provided that doesn’t take you over your threshold income limits.
If you think when it comes to Bankruptcy, your situation is more intricate, then feel free to get qualified advice in Australia. I may sound like a broken record, but bear in mind that it’s always a good idea to work through these options before declaring bankruptcy, since once you have filed the paperwork it’s too late to change your mind.
If you wish to learn more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to contact Bankruptcy Advice Australia on 1300 879 867, we have offices in, Brisbane, Canberra, Sunshine Coast, Sydney, Melbourne, Gold Coast, Adelaide, Perth, Darwin and Hobart. or visit our website: www.bankruptcy-advice.com.au/