Salary is always a worry with Bankruptcy, so I would like to talk you through a few of the factors around income and going bankrupt
Bankruptcy in Lismore is always going to be complicated and frustrating, particularly because it involves money and people’s livelihoods. Many people regularly ask us how bankruptcy will certainly impact their salary, because insolvency is going to limit just how much you can make. When it concerns Bankruptcy it is mostly going to think about your complete income and the amount of dependants that you have
How is this calculated?
You ought to understand about Bankruptcy that there are actually established amounts that you can earn– yes, this suggests that you may not be left penniless, but neither does this mean that you could be earning a six figure salary and not actually be repaying bankruptcy debt.
Net income is the pre-tax/ in the hand amount you make each year.
A dependant is someone who lives with you and earns less than $3,124 annually (regardless of their age).
Could this be raised?
Yes, under some conditions you can get a hardship variation that brings up the threshold amount, if you have monetary commitments in Lismore like medical, child care, substantial travel to and from work, or a situation where your partner used to work but is now not able to support the household income level.
Could my boss be informed about this?
No, the good thing about Bankruptcy is that your employer will not be notified when you file for 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. 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 yearly and you have no dependents residing with you then your changed 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 unsettled taxes), then your tax refund will very likely be taken by the ATO while you are bankrupt to chip in toward your tax bill. If you do not have a tax bill then you will retain your tax refund provided that doesn’t take you over your threshold income level caps.
So what is considered income?
Certainly there are a lot more issues involving income and Bankruptcy– especially because many people will suggest with what is taken as ‘income’- if you’re unsure, it’s a good idea to get specialist bankruptcy advice in Lismore.
By far among the most crucial things about Bankruptcy is that you should get guidance as soon as possible as it will guarantee you are taking the best path. It is generally going to be better to be over prepared due to the fact that when it comes to Bankruptcy knowledge is power, and as soon as you have submitted the documentation it’s far too late to change your decision.
If you think when it comes to Bankruptcy, your case is more complex than what is discussed above, then I would strongly recommend that you get professional recommendations in Lismore.
If you would like to learn more about what to do, where to turn and what complications to inquire about with Bankruptcy, then don’t wait to consult with Bankruptcy Experts Lismore on 1300 795 575, or explore our website: www.bankruptcyexpertslismore.com.au.