Tuesday, May 24, 2016

Bankruptcy in Maitland - Will my income be affected if I go bankrupt?


Bankruptcy Maitland is a confusing process, and you have to be sure you get the right suggestions. And when it comes to your income being affected, the answer to the question is maybe. The first thing you need to know about going bankrupt is there is no restriction on how much you can earn. However, I will mention that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to understand about this area of Bankruptcy is how much you can earn before you start paying back money to your creditors via your trustee (see table below).

Net income is the pre-tax/ in the hand amount of money you earn each year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).
You can get a hardship variation that increases the threshold amount, if you have financial commitments in Maitland such as medical, child care, major travel to and from work, or a scenario where your spouse used to work but is no longer able to contribute to the household income.

Some of the intriguing parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, Child support is always taken into account in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also thought about, for example if you provide $5,000 child support each year and you have no dependents living with you then your amended net income limit will be $55,332.10.

There are a lot more issues surrounding income and what is or isn't thought of as income - if you're not sure, it's recommended to get professional advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO while you are bankrupt to contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund so long as that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your circumstance is more complex, then please get professional advice in Maitland. I may sound like a broken record, but keep in mind that it's always a smart idea to overcome these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.


If you would like to learn more about what to do, where to turn and what problems to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Maitland on 1300 795 575, or go to our website: bankruptcyexpertsMaitland.com.au.

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