Bankruptcy in Joondalup – What happens to my income?
Income is usually a worry with Bankruptcy, so I want to talk you through a number of the factors around income and going bankrupt
Bankruptcy in Joondalup is always going to be complicated and frustrating, particularly because it involves cash and people’s livelihoods. People always ask us how bankruptcy will influence their earnings, because bankruptcy is going to restrain just how much you can make. When it comes to Bankruptcy it is mainly going to think about your total income and the number of dependants that you have
How is this calculated?
You need to learn about Bankruptcy that there are really set quantities that you could make– yes, this suggests that you can not be left broke, but neither does it mean that you might be making a six figure income and not actually be paying back insolvency debt.
Net income is the pre-tax/ in the hand amount you gain each year.
A dependant is somebody who lives with you and earns less than $3,124 each year (regardless of their age).
Can this be increased?
Yes, under some situations you can get a hardship variant that brings up the threshold quantity, if you have financial obligations in Joondalup like medical, child care, 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 good thing about Bankruptcy is that your employer will not be advised when you file for bankruptcy.
What about child support?
Child support is always considered in bankruptcy– this means that if you receive child support, that is not factored in as income. However if you pay child support this will be typically taken out from your net income sum, for example if you supply $5,000 child support each year and you have no dependents residing with you then your altered net income limit will be $55,332.10.
What about tax-time, do I continue to get cash back?
If one of your creditors is the ATO (for unsettled taxes), then your tax refund will likely be taken by the ATO whilst you are bankrupt to chip in towards your tax bill. If you do not have a tax bill then you will retain your tax return as long as that doesn’t take you over your threshold income level caps.
So what is considered income?
There are a lot more issues involving earnings and Bankruptcy– particularly because numerous individuals will argue with what is considered ‘income’- if you’re uncertain, it’s a smart idea to get professional insolvency advice in Joondalup.
By far some of the most important features of Bankruptcy is that you must get guidance as soon as practical as it will ensure you are taking the correct path. It is always going to be best to be over prepared due to the fact that when it comes to Bankruptcy knowledge is power, and once you have submitted the documentation it’s far too late to change your decision.
If you believe when it comes to Bankruptcy, your circumstance is more complicated than what is pointed out above, then I would highly recommend that you get professional recommendations in Joondalup.
If you wish to find out more about what to do, where to turn and what issues to ask about with Bankruptcy, then don’t wait to contact Bankruptcy Experts Joondalup on 1300 795 575, or explore our website: www.bankruptcyexpertsjoondalup.com.au.