Bankruptcy in Australia – What happens to my income?
Money is usually a worry with Bankruptcy, so I want to talk you through a couple of the considerations around income and Insolvency
Bankruptcy in Australia is always going to be complex and frustrating, especially because it involves cash and people’s livelihoods. Many people always ask us how bankruptcy will influence their earnings, because bankruptcy is going to restrict just how much you can generate. When it comes to Bankruptcy it is usually going to think about your overall income and the amount of dependants that you have
How is this determined?
You ought to learn about Bankruptcy that there are really set amounts that you could earn– yes, this indicates that you will certainly not be left penniless, but nor does it mean that you can be earning a six figure salary and not be repaying personal bankruptcy debt.
Net income is the pre-tax/ in the hand quantity you gain annually.
A dependant is a person who lives with you and makes below $3,124 each year (regardless of their age).
Could this be raised?
Yes, under some situations you can get a hardship variation that brings up the threshold amount, if you have monetary obligations in Australia like health-related, child care, substantial travel to and from work, or a circumstance where your partner used to be employed but is now not able to support the household income level.
Could my boss be informed about this?
No, the good thing about Bankruptcy is that your employer will not be notified when you file for bankruptcy.
What about child support?
Child support is always taken into consideration in insolvency– this indicates that if you receive child support, that is not factored in as earnings. However if you pay child support this will be typically taken out from your net income figure, for example if you supply $5,000 child support every year and you have no dependents residing with you then your changed net income limit will be $55,332.10.
What about tax-time, do I still get cash back?
If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO while you are bankrupt to chip in towards your tax bill. If you do not have a tax debt then you will keep your tax return so long as that doesn’t take you over your threshold income caps.
So what is regarded as income?
There are a lot more concerns surrounding salary and Bankruptcy– even more so because many people will suggest with what is thought of as ‘income’- if you’re uncertain, it’s a great idea to get specialist personal bankruptcy advice in Australia.
Without a doubt one of the most crucial aspects of Bankruptcy is that you ought to get suggestions as quickly as practical because it will ensure you are taking the right way. It is always going to be better to be over prepared because when it comes to Bankruptcy knowledge is everything, and as soon as you have filed the paperwork it’s far too late to change your mind.
If you think when it comes to Bankruptcy, your case is more complicated than what is mentioned above, then I would highly advise that you get expert advice in Australia.
If you would love to learn more about what to do, where to turn and what troubles to ask about with Bankruptcy, then don’t hesitate to contact Bankruptcy Experts on 1300 795 575, or explore our website: www.bankruptcyexperts.com.au.