Bankruptcy Australia is a complicated process,
and you should be sure you get the right insight. And when it comes to your
income being affected, the answer to the question is maybe. The very first
thing you have to know about going bankrupt is there is no constraint on how
much you can earn. However, I will say 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 just how much 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 request a hardship variation that raises the
threshold amount, if you have financial commitments in Australia like medical,
child care, significant travel to and from your job, or a circumstance where
your partner used to work but is not able to support the family income.
Some of the useful parts of Bankruptcy is that your
employer will not be told 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 pay $5,000 child support each year and you
have no dependents living with you then your revised net income limit will be
$55,332.10.
There are much more issues covering income and what is
or isn't thought of as income - if you're unsure, it's recommended to get
experienced advice. The reason you will need to consider your income as a part
of the Big 5 questions here is that bankruptcy is in some situations not an
economically sensible 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
contribute 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
restrictions.
If you believe that when it comes to Bankruptcy, your
circumstance is more complicated, 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 smart idea to overcome these options before declaring bankruptcy, because
once you have filed the paperwork it's far too late to change your mind.
If you intend to find out more about what to do, where
to turn and what questions to ask about Bankruptcy, then don't hesitate to
contact Bankruptcy Experts Australia on 1300 795 575, or explore our website:
www.bankruptcyexperts.com.au
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