Salary is always a worry with Bankruptcy, so I wish to talk you through a number of the points to consider around income and going bankrupt

what-happen-to-my-income

Bankruptcy in Dandenong is always going to be complex and frustrating, especially because it involves money and people’s livelihoods. Many people regularly ask us how bankruptcy will certainly influence their income, because insolvency is going to restrain just how much you can earn. When it involves Bankruptcy it is primarily going to think about your overall income and the number of dependants that you have

How is this calculated?

You should understand about Bankruptcy that there are actually set amounts that you could earn– yes, this suggests that you will not be left broke, but neither does this mean that you can be making a six figure salary and not be paying back personal bankruptcy debt.

Net income is the pre-tax/ in the hand amount you earn annually.

A dependant is a person who lives with you and earns less than $3,124 per year (regardless of their age).

Can this be increased?

Yes, under some scenarios you can get a hardship variant that brings up the threshold quantity, if you have financial commitments in Dandenong like medical, child care, considerable travel to and from your job, or a situation where your partner used to be employed but is now not able to support the household income.

Could my boss be told about this?

No, the good thing about Bankruptcy is that your workplace will not be advised when you declare bankruptcy.

What about child support?

Child support is always taken into consideration in bankruptcy– this indicates that if you get child support, that is not factored in as earnings. However if you pay child support this will be often obtained from your net income amount, for instance if you supply $5,000 child support each 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 very likely be taken by the ATO whilst you are insolvent to chip in toward your tax debt. If you do not have a tax debt then you will keep your tax refund so long as that doesn’t take you over your threshold income level caps.

So what is considered income?

There are a lot more concerns surrounding income and Bankruptcy– particularly because numerous people will suggest with what is taken as ‘income’- if you’re unsure, it’s a good idea to get expert personal bankruptcy advice in Dandenong.

Without a doubt some of the most important things about Bankruptcy is that you should get advice as early as possible because it will ensure you are taking the best way. It is generally going to be best to be over prepared because when it concerns Bankruptcy knowledge is everything, and once you have filed the paperwork it’s far too late to change your mind.

If you believe when it comes to Bankruptcy, your case is more intricate than what is touched on above, then I would highly advise that you get expert guidance in Dandenong.

If you wish to find out more about what to do, where to turn and what issues to ask about with Bankruptcy, then don’t wait to get in touch with Bankruptcy Experts Dandenong on 1300 795 575, or explore our website: www.bankruptcyexpertsdandenong.com.au.

Bankruptcy in Dandenong– What happens to my income?