Bankruptcy Advice Rockingham is a intricate process, and you need to make sure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The first thing you need to know about going bankrupt is there is no limit on how much you can earn. However, I will point out that your income is a considerable consideration when working through when it comes to Bankruptcy Advice.
The first thing you need to know about this area of Bankruptcy Advice is the amount 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 each year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).
You can apply for a hardship variation that increases the threshold amount, if you have costs in Rockingham like medical, child care, considerable travel to and from work, or a situation where your spouse used to work but is not able to add to the household income.
Some of the interesting parts of Bankruptcy Advice is that your employer will not be alerted when you file for bankruptcy. Also, Child support is always considered in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you pay $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.
There are more issues encompassing income and what is or isn’t regarded as income – if you’re uncertain, it’s recommended to get experienced advice. The reason you need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically practical option.
If one of your creditors is the ATO (for unpaid taxes), then your tax refund may 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 so long as that doesn’t take you over your threshold income caps.
If you believe that when it comes to Bankruptcy Advice, your situation is more complicated, then please get qualified advice in Rockingham. I may sound like a broken record, but remember that it’s always a good idea to work through these options before declaring bankruptcy, since once you have filed the paperwork it’s too late to change your mind.
If you intend to learn more about what to do, where to turn and what problems to ask about Bankruptcy Advice, then don’t hesitate to contact Bankruptcy Advice Rockingham on 1300 879 867, or visit our website: bankruptcyexpertsrockingham.com.au.