Bankruptcy in Canberra - Will my income be altered if I go bankrupt?

Bankruptcy Canberra is a complicated process, and you need to ensure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The first thing you have to know about going bankrupt is there is no rule 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.

The first thing you need to know about this area of Bankruptcy 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 sum you earn per 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 raises the threshold amount, if you have costs in Canberra such as medical, child care, serious travel to and from work, or a situation where your partner used to work but is not able to add to the family income.

Some of the useful parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, Child support is always considered 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 provide $5,000 child support each year and you have no dependents living with you then your amended net income limit will be $55,332.10.

There are more issues covering income and what is or isn't regarded as income - if you're uncertain, it's best to get specialist advice. The reason you need to 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 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 provided that doesn't take you over your threshold income caps.

If you believe that when it comes to Bankruptcy, your situation is more complicated, then feel free to get specialist advice in Canberra. I may seem like a broken record, but keep in mind that it's always a good idea to overcome these options before declaring bankruptcy, due to the fact that once you have filed the paperwork it's far too late to change your mind.

If you would like to find out more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Canberra on 1300 795 575, or explore our website: bankruptcyexpertsCanberra.com.au.