Income is always a worry with Bankruptcy, so I would like to talk you through a couple of the considerations around income and going bankrupt
Bankruptcy in Albury is always going to be complex and frustrating, particularly because it involves money and people’s livelihoods. People always ask us how bankruptcy will impact their salary, because insolvency is going to limit just how much money you can earn. When it concerns Bankruptcy it is primarily going to take into consideration your overall income and the amount of dependants that you have
How is this calculated?
You should know about Bankruptcy that there are in fact set amounts that you may earn– yes, this means that you may not be left penniless, but nor does this mean that you can be earning a six figure paycheck and not actually be repaying personal bankruptcy debt.
Net income is the pre-tax/ in the hand amount you earn each year.
A dependant is a person who lives with you and makes under $3,124 per year (regardless of their age).
Could this be increased?
Yes, under some conditions you can get a hardship variation that raises the threshold quantity, if you have financial commitments in Albury like health-related, childcare, considerable travel to and from your job, or a situation where your partner used to be employed but is no longer able to assist the household income level.
Could my boss be informed about this?
No, the good thing about Bankruptcy is that your workplace will not be informed when you apply for bankruptcy.
What about child support?
Child support is always considered in personal bankruptcy– this means that if you receive child support, that is not factored in as earnings. Having said that if you pay child support this will be often obtained from your net income amount, for example if you supply $5,000 child support yearly and you have no dependents living with you then your altered 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 whilst you are bankrupt to chip in toward your tax bill. If you don’t have a tax debt then you will keep your tax refund as long as that doesn’t take you over your threshold income level caps.
So what is regarded as income?
Certainly there are a lot more issues surrounding salary and Bankruptcy– especially because so many people will suggest with what is thought of as ‘income’- if you’re not exactly sure, it’s a great idea to get specialist personal bankruptcy advice in Albury.
By far some of the most crucial features of Bankruptcy is that you ought to get recommendations as soon as feasible because it will guarantee you are taking the right path. It is always going to be better to be over prepared because when it comes to Bankruptcy knowledge is everything, and as soon as you have filed the paperwork 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 discussed above, then I would strongly recommend that you get specialist guidance in Albury.
If you would like to find out more about what to do, where to turn and what troubles to ask about with Bankruptcy, then don’t wait to get in touch with Bankruptcy Experts Albury on 1300 795 575, or explore our website: www.bankruptcyexpertsalbury.com.au.