Money is always a worry with Bankruptcy, so I want to talk you through some of the points to consider around income and Insolvency
Bankruptcy in Fremantle is always going to be complicated and frustrating, specifically because it involves money and people’s livelihoods. Many people regularly ask us how bankruptcy will certainly impact their income, because bankruptcy is going to limit just how much you can generate. When it comes to Bankruptcy it is mostly going to consider your total income and the number of dependants that you have
How is this calculated?
You need to know about Bankruptcy that there are in fact established amounts that you can make– yes, this means that you will not be left penniless, but neither does it mean that you could be earning a six figure salary and not actually be repaying 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 below $3,124 annually (regardless of their age).
Could this be increased?
Yes, under some scenarios you can get a hardship variation that brings up the threshold quantity, if you have financial obligations in Fremantle like health-related, childcare, considerable travel to and from your job, or a circumstance where your partner used to be employed but is now not able to support the household income.
Could my boss be told about this?
No, the benefit about Bankruptcy is that your employer will not be informed when you declare bankruptcy.
What about child support?
Child support is always taken into account 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 taken out from your net income sum, for instance 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 continue to get money back?
If one of your creditors is the ATO (for unpaid taxes), then your tax refund will very likely be taken by the ATO when you are insolvent to chip in towards your tax bill. If you do not have a tax bill then you will keep your tax return as 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 salary and Bankruptcy– even more so because so many individuals will argue with what is considered ‘income’- if you’re uncertain, it’s a good idea to get professional bankruptcy advice in Fremantle.
Without a doubt some of the most important aspects of Bankruptcy is that you should get suggestions as quickly as practical because it will guarantee you are taking the right way. It is always going to be best to be over prepared due to the fact that when it comes to Bankruptcy knowledge is everything, and once you have submitted the paperwork it’s far too late to change your decision.
If you believe when it comes to Bankruptcy, your circumstance is more detailed than what is pointed out above, then I would strongly recommend that you get professional guidance in Fremantle.
If you wish to learn more about what to do, where to turn and what issues to ask about with Bankruptcy, then don’t hesitate to consult with Bankruptcy Experts Fremantle on 1300 795 575, or explore our website: www.bankruptcyexpertsfremantle.com.au.