Salary is always a concern with Bankruptcy, so I wish to talk you through some of the considerations around income and going bankrupt
Bankruptcy in Mildura is always going to be complicated and frustrating, specifically because it involves money and people’s livelihoods. A lot of people always ask us how bankruptcy will affect their salary, because insolvency is going to restrain just how much money you can make. When it involves Bankruptcy it is usually going to consider your total income and the amount of dependants that you have
How is this determined?
You should know about Bankruptcy that there are actually set quantities that you could earn– yes, this means that you will certainly not be left broke, but neither does this mean that you might be making a six figure paycheck and not actually be paying back bankruptcy 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 no more than $3,124 annually (regardless of their age).
Could this be increased?
Yes, under some scenarios you can get a hardship variant that increases the threshold quantity, if you have monetary obligations in Mildura like health-related, childcare, substantial travel to and from work, or a circumstance where your partner used to work but is no longer able to support the household income.
Will my boss be informed about this?
No, the benefit about Bankruptcy is that your workplace will not be advised when you file for bankruptcy.
What about child support?
Child support is always taken into account in personal bankruptcy– this indicates 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 taken out from your net income figure, for instance if you supply $5,000 child support yearly 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 money back?
If one of your creditors is the ATO (for unpaid taxes), then your tax refund will most likely be taken by the ATO whilst you are bankrupt to contribute towards your tax debt. If you do not have a tax bill then you will retain your tax return so long as that doesn’t take you over your threshold income level caps.
So what is regarded as income?
There are a lot more situations surrounding salary and Bankruptcy– even more so because so many people will justify with what is thought of as ‘income’- if you’re unsure, it’s a smart idea to get professional insolvency advice in Mildura.
By far among the most important aspects of Bankruptcy is that you must get recommendations as soon as practical as it will make sure you are taking the best path. It is generally going to be better to be over prepared because when it concerns Bankruptcy knowledge is everything, and as soon as you have submitted the documentation it’s far too late to change your mind.
If you believe when it comes to Bankruptcy, your scenario is more intricate than what is mentioned above, then I would highly suggest that you get expert advice in Mildura.
If you want to learn more about what to do, where to turn and what issues to ask about with Bankruptcy, then don’t hesitate to call Bankruptcy Experts Mildura on 1300 795 575, or explore our website: www.bankruptcyexpertsmildura.com.au.