Money is usually a worry with Bankruptcy, so I would like to talk you through some of the factors around income and going bankrupt
Bankruptcy in Alice Springs is always going to be complex and troublesome, especially because it involves cash and people’s livelihoods. A lot of people always ask us how bankruptcy will influence their income, because bankruptcy is going to restrict just how much money you can generate. When it concerns Bankruptcy it is mainly going to think about your overall income and the number of dependants that you have
How is this determined?
You should know about Bankruptcy that there are actually established quantities that you can make– yes, this suggests that you may not be left destitute, but neither does it mean that you could be making a six figure paycheck and not be paying back personal bankruptcy debt.
Net income is the pre-tax/ in the hand amount you earn annually.
A dependant is somebody who lives with you and makes less than $3,124 annually (regardless of their age).
Can this be raised?
Yes, under some circumstances you can get a hardship variant that raises the threshold quantity, if you have monetary commitments in Alice Springs like medical, childcare, substantial travel to and from your job, or a circumstance where your partner used to work but is no longer able to assist the household income level.
Will my boss be told about this?
No, the good thing about Bankruptcy is that your employer 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 receive child support, that is not factored in as earnings. However 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 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 likely be taken by the ATO when you are bankrupt to contribute towards your tax debt. If you do not have a tax bill then you will keep your tax return so long as that doesn’t take you over your threshold income caps.
So what is regarded as income?
There are a lot more concerns surrounding salary and Bankruptcy– particularly because a lot of people will argue with what is taken as ‘income’- if you’re unsure, it’s a great idea to get expert bankruptcy advice in Alice Springs.
Easily some of the most essential aspects of Bankruptcy is that you must get suggestions as soon as possible because it will ensure you are taking the correct path. It is generally going to be best to be over prepared due to the fact that when it comes to Bankruptcy knowledge is everything, and as soon as you have submitted the paperwork it’s far too late to change your mind.
If you think when it comes to Bankruptcy, your case is more detailed than what is discussed above, then I would strongly suggest that you get professional recommendations in Alice Springs.
If you would love to learn more about what to do, where to turn and what troubles to inquire about with Bankruptcy, then don’t think twice to consult with Bankruptcy Experts Alice Springs on 1300 795 575, or explore our website: www.bankruptcyexpertsalicesprings.com.au.