|March 7, 2017||3|
Income is usually a concern with Bankruptcy, so I want to talk you through some of the factors around income and Bankruptcy
Bankruptcy in Australia is always going to be complex and troublesome, particularly because it involves money and people’s livelihoods. People always ask us how bankruptcy will affect their income, because bankruptcy is going to restrain just how much you can make. When it concerns Bankruptcy it is usually going to consider your overall income and the number of dependants that you have
How is this calculated?
You should understand about Bankruptcy that there are really set amounts that you could make– yes, this means that you may not be left destitute, but nor does it mean that you could be making a six figure paycheck and not actually be repaying personal bankruptcy debt.
Net income is the pre-tax/ in the hand amount you earn annually.
A dependant is someone who lives with you and earns under $3,124 each year (regardless of their age).
Could this be raised?
Yes, under some conditions you can get a hardship variation that raises the threshold amount, if you have monetary commitments in Australia like health-related, childcare, substantial travel to and from work, or a situation where your partner used to be employed but is now not able to support the household income.
Could my boss be informed about this?
No, the benefit about Bankruptcy is that your workplace will not be advised when you apply for bankruptcy.
What about child support?
Child support is always considered in personal bankruptcy– this means 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 figure, for instance if you supply $5,000 child support each year and you have no dependents residing with you then your altered 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 unpaid taxes), then your tax refund will very likely be taken by the ATO while you are bankrupt to chip in towards your tax debt. If you do not have a tax debt then you will retain your tax return so long as that doesn’t take you over your threshold income level caps.
So what is considered income?
Certainly there are a lot more issues surrounding earnings and Bankruptcy– especially because so many individuals will argue with what is taken as ‘income’- if you’re not exactly sure, it’s a great idea to get expert bankruptcy advice in Australia.
Easily one of the most important features of Bankruptcy is that you ought to get suggestions as soon as practical because it will make sure you are taking the best path. It is generally going to be better to be over prepared due to the fact that when it comes to Bankruptcy knowledge is everything, and once you have submitted the documentation it’s far too late to change your mind.
If you believe when it comes to Bankruptcy, your situation is more complex than what is pointed out above, then I would highly recommend that you get expert advice in Australia.
If you want to find out more about what to do, where to turn and what issues to inquire about with Bankruptcy, then don’t wait to consult with Bankruptcy Experts on 1300 818 575, or explore our website: www.freshstartsolutions.com.au.