Bankruptcy Advice Hervey Bay is a intricate process, and you ought to make sure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you need to know about going bankrupt is there is no regulation on how much you can earn. However, I will point out that your income is a major consideration when working through when it comes to Bankruptcy Advice.
The very first thing you need to understand about this area of Bankruptcy Advice is just 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 annually. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).
You can make an application for a hardship variation that increases the threshold amount, if you have expenses in Hervey Bay like medical, child care, significant travel to and from your job, or a situation where your partner used to work but is not able to support the household income.
Some of the interesting parts of Bankruptcy Advice 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 give $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.
There are a lot more issues involving income and what is or isn’t regarded as income – if you’re not exactly sure, it’s best to get skilled 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 viable option.
If one of your creditors is the ATO (for unpaid taxes), then your tax refund may be taken by the ATO while you are bankrupt to add toward your tax bill. If you don’t have a tax bill then you will keep your tax refund as long as that doesn’t take you over your threshold income restrictions.
If you feel like when it comes to Bankruptcy Advice, your case is more intricate, then simply get expert advice in Hervey Bay. I may seem like a broken record, but bear in mind that it’s always a good idea to overcome these options before declaring bankruptcy, because once you have filed the paperwork it’s far too late to change your mind.
If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy Advice, then feel free to contact Bankruptcy Experts Hervey Bay on 1300 795 575, or explore our website: bankruptcyexpertsHerveyBay.com.au.