Bankruptcy in Canberra– What happens to my income?
Money is always a concern with Bankruptcy, so I wish to talk you through a number of the considerations around income and Insolvency
Bankruptcy in Canberra is always going to be complicated and troublesome, especially because it involves money and people’s livelihoods. People always ask us how bankruptcy will certainly influence their salary, because insolvency is going to restrict just how much money you can make. When it comes to Bankruptcy it is mainly going to take into consideration your overall income and the number of dependants that you have
How is this determined?
You ought to understand about Bankruptcy that there are in fact set quantities that you can earn– yes, this means that you can not be left destitute, but neither does it mean that you can be making a six figure income and not be paying back insolvency debt.
Net income is the pre-tax/ in the hand amount you gain annually.
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 brings up the threshold quantity, if you have monetary commitments in Canberra like medical, childcare, substantial travel to and from work, or a circumstance where your partner used to work but is no longer able to assist 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 apply for bankruptcy.
What about child support?
Child support is always considered 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 taken out from your net income amount, 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 unpaid taxes), then your tax refund will very likely be taken by the ATO when you are insolvent to contribute toward your tax debt. If you do not have a tax debt then you will keep your tax return provided that doesn’t take you over your threshold income caps.
So what is regarded as income?
There are a lot more concerns surrounding income and Bankruptcy– particularly because a lot of individuals will justify with what is considered ‘income’- if you’re not sure, it’s a great idea to get specialist insolvency advice in Canberra.
By far some of the most crucial things about Bankruptcy is that you need to get guidance as early as feasible because it will make sure you are taking the best way. It is generally going to be best to be over prepared because when it comes to Bankruptcy knowledge is power, and once you have submitted the documentation it’s far too late to change your mind.
If you believe when it comes to Bankruptcy, your circumstance is more detailed than what is stated above, then I would highly recommend that you get professional recommendations in Canberra.
If you would like to learn more about what to do, where to turn and what issues to inquire about with Bankruptcy, then don’t hesitate to contact Bankruptcy Experts Canberra on 1300 795 575, or explore our website: www.bankruptcyexpertscanberra.com.au.