Monday, May 23, 2016

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

Bankruptcy Perth is a challenging process, and you should make sure you get the right guidance. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you have to know about going bankrupt is there is no limit on how much you can earn. However, I will point out that your income is a significant consideration when working through when it comes to Bankruptcy.

The first thing you need to know about this area of Bankruptcy is the amount 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 apply for a hardship variation that increases the threshold amount, if you have financial strains in Perth like medical, child care, sizable travel to and from your job, or a situation where your partner used to work but is not able to support the family income.

Some of the insightful parts of Bankruptcy is that your employer will not be alerted when you file for bankruptcy. Also, Child support is always taken into consideration 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 pay $5,000 child support each year and you have no dependents living with you then your altered net income limit will be $55,332.10.

There are much more issues involving income and what is or isn't regarded as income - if you're not exactly sure, it's ideal to get specialist advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically sensible option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO whilst you are bankrupt to add 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 restrictions.

If you think when it comes to Bankruptcy, your situation is more complicated, then feel free to get qualified advice in Perth. I may sound like a broken record, but remember that it's always a smart idea to overcome these options prior to declaring bankruptcy, because once you have filed the paperwork it's too late to change your mind.

If you would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Perth on 1300 795 575, or visit our website:

No comments:

Post a Comment