Income is usually a concern with Bankruptcy, so I wish to talk you through a couple of the considerations around income and Bankruptcy
Bankruptcy in Northern Rivers is always going to be complex and frustrating, particularly because it involves cash and people’s livelihoods. Many people regularly ask us how bankruptcy will influence their earnings, because insolvency is going to limit just how much you can generate. When it comes to Bankruptcy it is mostly going to take into consideration your total income and the number of dependants that you have
How is this determined?
You ought to learn about Bankruptcy that there are really set amounts that you could make– yes, this suggests that you will not be left broke, but nor does this mean that you can be earning a six figure salary and not actually be paying back bankruptcy debt.
Net income is the pre-tax/ in the hand amount you earn each year.
A dependant is a person who lives with you and makes less than $3,124 each year (regardless of their age).
Could this be raised?
Yes, under some scenarios you can get a hardship variation that increases the threshold amount, if you have monetary commitments in Northern Rivers like health-related, child care, considerable travel to and from work, or a situation where your partner used to be employed but is no longer able to assist the household income level.
Will my boss be informed about this?
No, the good thing about Bankruptcy is that your employer will not be informed when you declare bankruptcy.
What about child support?
Child support is always considered 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 often taken out from your net income figure, for example if you supply $5,000 child support every year and you have no dependents living 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 whilst you are bankrupt to chip in toward your tax bill. If you do not have a tax bill then you will retain your tax refund provided that doesn’t take you over your threshold income caps.
So what is regarded as income?
There are a lot more concerns involving salary and Bankruptcy– even more so because so many people will justify with what is considered ‘income’- if you’re uncertain, it’s a good idea to get expert personal bankruptcy advice in Northern Rivers.
By far some of the most crucial features of Bankruptcy is that you need to get advice as quickly as practical because it will make sure you are taking the best way. It is generally going to be better to be over prepared because when it comes to Bankruptcy knowledge is power, and once you have filed the documentation it’s far too late to change your decision.
If you think when it comes to Bankruptcy, your scenario is more detailed than what is discussed above, then I would highly recommend that you get professional guidance in Northern Rivers.
If you want to find out more about what to do, where to turn and what complications to ask about with Bankruptcy, then don’t think twice to consult with Bankruptcy Experts Northern Rovers on 1300 795 575, or explore our website: www.bankruptcyexpertsnorthernrivers.com.au.