Income is regularly a concern with Bankruptcy, so I want to talk you through a number of the factors around income and going bankrupt
Bankruptcy in Sunshine Coast is always going to be complex and troublesome, specifically because it includes cash and people’s livelihoods. People regularly ask us how bankruptcy will certainly influence their earnings, because insolvency is going to limit just how much money you can earn. When it concerns Bankruptcy it is usually going to think about your total income and the amount of dependants that you have
How is this calculated?
You should know about Bankruptcy that there are in fact set quantities that you can earn– yes, this suggests that you can not be left penniless, but neither does this mean that you might be making a six figure income and not actually be repaying insolvency debt.
Net income is the pre-tax/ in the hand amount you make annually.
A dependant is a person who lives with you and makes below $3,124 each year (regardless of their age).
Can this be increased?
Yes, under some scenarios you can get a hardship variation that increases the threshold quantity, if you have monetary commitments in Sunshine Coast like health-related, childcare, 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 level.
Will my boss be informed about this?
No, the good thing about Bankruptcy is that your workplace will not be advised when you apply for bankruptcy.
What about child support?
Child support is always taken into account in bankruptcy– this means that if you receive 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 sum, 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 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 when you are insolvent to chip in towards your tax bill. If you don’t have a tax bill then you will retain your tax refund so long as that doesn’t take you over your threshold income caps.
So what is considered income?
Certainly there are a lot more concerns surrounding income and Bankruptcy– even more so because a lot of people will suggest with what is considered ‘income’- if you’re not sure, it’s a good idea to get professional bankruptcy advice in Sunshine Coast.
Easily some of the most crucial features of Bankruptcy is that you must get advice as early as possible because it will guarantee you are taking the best way. It is always going to be better to be over prepared due to the fact that when it concerns Bankruptcy knowledge is power, and as soon as you have filed the documentation it’s far too late to change your mind.
If you believe when it comes to Bankruptcy, your scenario is more detailed than what is touched on above, then I would highly recommend that you get specialist guidance in Sunshine Coast.
If you wish to learn more about what to do, where to turn and what concerns to inquire about with Bankruptcy, then don’t think twice to contact Bankruptcy Experts Sunshine Coast on 1300 795 575, or explore our website: www.bankruptcyexpertssunshinecoast.com.au.