Bankruptcy Advice in Albury – Will my income be changed if I go bankrupt?

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Bankruptcy Advice Albury is a intricate process, and you need to be 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 need to know about going bankrupt is there is no limit on how much you can earn. However, I will mention that your income is a significant consideration when working through when it comes to Bankruptcy Advice.

The first thing you need to keep in mind about this area of Bankruptcy Advice is 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 portion 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 look for a hardship variation that raises the threshold amount, if you have expenses in Albury such as medical, child care, significant travel to and from work, or a circumstance where your spouse used to work but is not able to contribute to the household income.

Some of the intriguing parts of Bankruptcy Advice is that your employer will not be told when you file for bankruptcy. Also, Child support is always looked at in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you give $5,000 child support each year and you have no dependents living with you then your changed net income limit will be $55,332.10.

There are more issues involving income and what is or isn’t considered income – if you’re not sure, it’s ideal to get qualified advice. The reason you must consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will be taken by the ATO whilst you are bankrupt to contribute toward your tax bill. If you don’t have a tax bill then you will keep your tax refund just as long as that doesn’t take you over your threshold income limitations.

If you feel like when it comes to Bankruptcy Advice, your situation is more intricate, then simply get specialist advice in Albury. I may seem like a broken record, but bear in mind that it’s always a smart idea to overcome these options prior to declaring bankruptcy, since once you have filed the paperwork it’s far too late to change your mind.

If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy Advice, then feel free to contact Bankruptcy Advice Albury on 1300 879 867, or explore our website: bankruptcyexpertsalbury.com.au.

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