Money is always a concern with Bankruptcy, so I would like to talk you through a number of the factors to consider around income and going bankrupt
Bankruptcy in Melbourne is always going to be complex and frustrating, particularly because it includes cash and people’s livelihoods. Many people always ask us how bankruptcy will impact their income, because bankruptcy is going to restrict just how much money you can generate. When it comes to Bankruptcy it is mostly going to take into consideration 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 can make– yes, this suggests that you can not be left broke, but neither does this mean that you could be earning a six figure income and not be repaying insolvency debt.
Net income is the pre-tax/ in the hand amount you earn each year.
A dependant is somebody who lives with you and earns below $3,124 annually (regardless of their age).
Can this be increased?
Yes, under some circumstances you can get a hardship variation that raises the threshold amount, if you have monetary obligations in Melbourne like medical, child care, substantial travel to and from your job, or a situation where your partner used to work but is no longer able to support the household income level.
Will my boss be informed about this?
No, the benefit about Bankruptcy is that your workplace will not be notified when you declare bankruptcy.
What about child support?
Child support is always taken into account in insolvency– this indicates that if you get child support, that is not factored in as income. Having said that if you pay child support this will be often obtained from your net income figure, for example if you supply $5,000 child support every year and you have no dependents living with you then your changed net income limit will be $55,332.10.
What about tax-time, do I still get money back?
If one of your creditors is the ATO (for unsettled taxes), then your tax refund will most likely be taken by the ATO while you are bankrupt to contribute toward your tax bill. If you don’t have a tax debt then you will retain your tax refund provided that doesn’t take you over your threshold income caps.
So what is considered income?
There are a lot more issues involving salary and Bankruptcy– especially because numerous individuals will justify with what is considered ‘income’- if you’re not exactly sure, it’s a great idea to get professional insolvency advice in Melbourne.
By far one of the most crucial things about Bankruptcy is that you need to get advice as soon as possible because it will ensure 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 once you have submitted the documentation it’s far too late to change your mind.
If you think when it comes to Bankruptcy, your case is more intricate than what is mentioned above, then I would highly suggest that you get professional advice in Melbourne.
If you want to learn more about what to do, where to turn and what concerns to inquire about with Bankruptcy, then don’t hesitate to get in touch with Bankruptcy Melbourne on 1300 795 575, or explore our website: www.bankruptcymelbourne.com.au.