Money is regularly a worry with Bankruptcy, so I would like to talk you through a number of the factors around income and going bankrupt
Bankruptcy in Port Stephens is always going to be complex and troublesome, especially because it involves cash and people’s livelihoods. Many people regularly ask us how bankruptcy will affect their income, because bankruptcy is going to limit just how much money you can generate. When it involves Bankruptcy it is primarily going to think about your total income and the amount of dependants that you have
How is this calculated?
You should learn about Bankruptcy that there are actually set amounts that you could earn– yes, this suggests that you will certainly not be left broke, but neither does this mean that you might be making a six figure salary and not be repaying personal bankruptcy debt.
Net income is the pre-tax/ in the hand quantity you gain annually.
A dependant is someone who lives with you and earns below $3,124 each year (regardless of their age).
Could this be raised?
Yes, under some situations you can get a hardship variation that brings up the threshold quantity, if you have financial obligations in Port Stephens like medical, childcare, substantial travel to and from your job, or a situation where your partner used to work but is no longer able to assist the household income level.
Could my boss be told about this?
No, the advantage about Bankruptcy is that your employer will not be informed when you file for 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 income. However if you pay child support this will be typically taken out 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 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 unsettled taxes), then your tax refund will very likely be taken by the ATO when you are bankrupt to contribute towards your tax bill. If you don’t have a tax bill then you will keep your tax return so long as that doesn’t take you over your threshold income caps.
So what is regarded as income?
There are a lot more issues surrounding income and Bankruptcy– especially because so many people will justify with what is thought of as ‘income’- if you’re uncertain, it’s a great idea to get specialist insolvency advice in Port Stephens.
Without a doubt one of the most crucial things about Bankruptcy is that you must get suggestions as early as practical as it will guarantee you are taking the right way. It is generally going to be best to be over prepared because when it concerns Bankruptcy knowledge is everything, and once you have submitted the documentation it’s far too late to change your mind.
If you think when it comes to Bankruptcy, your situation is more complex than what is discussed above, then I would strongly suggest that you get professional guidance in Port Stephens.
If you wish to learn more about what to do, where to turn and what issues to ask about with Bankruptcy, then don’t hesitate to contact Bankruptcy Experts Port Stephens on 1300 795 575, or explore our website: www.bankruptcyexpertsportstephens.com.au.