Salary is always a worry with Bankruptcy, so I want to talk you through a few of the points to consider around income and going bankrupt
Bankruptcy in Wangaratta is always going to be complicated and frustrating, especially because it involves money and people’s livelihoods. A lot of people always ask us how bankruptcy will affect their income, because insolvency is going to restrain just how much money you can earn. When it concerns Bankruptcy it is mostly going to consider your total income and the number of dependants that you have
How is this determined?
You ought to know about Bankruptcy that there are really established quantities that you may earn– yes, this suggests that you will not be left penniless, but neither does it mean that you can be making a six figure income and not actually be paying back insolvency debt.
Net income is the pre-tax/ in the hand quantity you make each year.
A dependant is a person who lives with you and makes under $3,124 per year (regardless of their age).
Can this be increased?
Yes, under some situations you can get a hardship variation that brings up the threshold quantity, if you have monetary obligations in Wangaratta like health-related, child care, considerable travel to and from work, or a situation where your partner used to work but is no longer able to assist the household income.
Could 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 taken into consideration in insolvency– this means that if you receive child support, that is not factored in as income. Having said that if you pay child support this will be typically taken out from your net income sum, for example if you provide $5,000 child support each 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 continue to get cash back?
If one of your creditors is the ATO (for unsettled taxes), then your tax refund will likely be taken by the ATO whilst you are bankrupt to chip in towards your tax debt. If you do not have a tax bill then you will keep your tax return as long as that doesn’t take you over your threshold income caps.
So what is considered income?
Certainly there are a lot more issues involving earnings and Bankruptcy– particularly because many people will argue with what is considered ‘income’- if you’re not sure, it’s a smart idea to get professional bankruptcy advice in Wangaratta.
Without a doubt one of the most important things about Bankruptcy is that you should get guidance as quickly as feasible because it will guarantee you are taking the right path. It is always going to be better to be over prepared due to the fact that when it concerns Bankruptcy knowledge is everything, and once you have filed the documentation it’s far too late to change your decision.
If you believe when it comes to Bankruptcy, your circumstance is more intricate than what is touched on above, then I would strongly advise that you get specialist advice in Wangaratta.
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 think twice to consult with Bankruptcy Experts Wangaratta on 1300 795 575, or explore our website: www.bankruptcyexpertswangaratta.com.au.