Bankruptcy in Tamworth – What happens to my income?
Income is always a worry with Bankruptcy, so I would like to talk you through a number of the points to consider around income and going bankrupt
Bankruptcy in Tamworth is always going to be complicated and frustrating, especially because it involves cash and people’s livelihoods. Many people regularly ask us how bankruptcy will impact their income, because insolvency is going to limit just how much you can make. When it involves Bankruptcy it is mainly going to take into consideration your overall income and the amount of dependants that you have
How is this calculated?
You should understand about Bankruptcy that there are in fact set quantities that you may earn– yes, this suggests that you may not be left broke, but neither does this mean that you can be making a six figure salary 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 someone who lives with you and earns less than $3,124 annually (regardless of their age).
Can this be increased?
Yes, under some situations you can get a hardship variant that increases the threshold quantity, if you have monetary obligations in Tamworth like health-related, child care, considerable travel to and from your job, or a circumstance where your partner used to work but is no longer able to support the household income level.
Could my boss be told about this?
No, the benefit about Bankruptcy is that your employer will not be advised when you declare bankruptcy.
What about child support?
Child support is always taken into consideration in personal bankruptcy– this means that if you get child support, that is not factored in as earnings. Having said that if you pay child support this will be typically obtained from your net income figure, for instance if you provide $5,000 child support every year 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 most likely be taken by the ATO whilst you are bankrupt to contribute towards your tax bill. If you don’t have a tax debt then you will keep your tax refund provided that doesn’t take you over your threshold income caps.
So what is regarded as income?
Certainly there are a lot more situations involving earnings and Bankruptcy– particularly because numerous people will suggest with what is thought of as ‘income’- if you’re uncertain, it’s a good idea to get professional personal bankruptcy advice in Tamworth.
By far one of the most important things about Bankruptcy is that you need to get suggestions as early as possible as it will make sure you are taking the best way. It is generally going to be best to be over prepared due to the fact that when it comes to Bankruptcy knowledge is everything, and as soon as you have filed the documentation it’s far too late to change your decision.
If you think when it comes to Bankruptcy, your circumstance is more complex than what is stated above, then I would strongly suggest that you get professional recommendations in Tamworth.
If you would love to find out more about what to do, where to turn and what concerns to ask about with Bankruptcy, then don’t hesitate to call Bankruptcy Experts Tamworth on 1300 795 575, or explore our website: www.bankruptcyexpertstamworth.com.au.