November 15, 2016 Comments Closed

Bankruptcy in Ipswich – What happens to my income?

Posted by:admin onNovember 15, 2016

Money is always a concern with Bankruptcy, so I wish to talk you through a few of the factors around income and Bankruptcy

what-happen-to-my-income

Bankruptcy in Ipswich is always going to be complicated and troublesome, particularly because it involves cash and people’s livelihoods. Many people regularly ask us how bankruptcy will certainly affect their income, because bankruptcy is going to limit just how much you can earn. When it concerns Bankruptcy it is primarily going to think about your complete income and the amount of dependants that you have

How is this determined?

You should understand about Bankruptcy that there are really set quantities that you could earn– yes, this means that you will not be left penniless, but nor does it mean that you might be earning a six figure income and not actually be paying back bankruptcy debt.

Net income is the pre-tax/ in the hand amount you earn annually.

A dependant is somebody who lives with you and makes below $3,124 annually (regardless of their age).

Can this be raised?

Yes, under some circumstances you can get a hardship variation that brings up the threshold quantity, if you have financial commitments in Ipswich like medical, childcare, substantial travel to and from your job, or a situation where your partner used to work but is now not able to assist the household income.

Could my boss be informed about this?

No, the advantage about Bankruptcy is that your employer will not be informed when you apply for bankruptcy.

What about child support?

Child support is always considered in personal bankruptcy– this means that if you get child support, that is not factored in as income. Having said that if you pay child support this will be typically taken out from your net income amount, for example if you provide $5,000 child support every year and you have no dependents residing with you then your altered net income limit will be $55,332.10.

What about tax-time, do I still get money 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 contribute toward your tax bill. If you don’t have a tax debt then you will retain your tax refund as long as that doesn’t take you over your threshold income caps.

So what is regarded as income?

There are a lot more situations involving earnings and Bankruptcy– even more so because so many people will suggest with what is thought of as ‘income’- if you’re not exactly sure, it’s a great idea to get expert insolvency advice in Ipswich.

Without a doubt one of the most essential aspects of Bankruptcy is that you need to get guidance as early as feasible as it will ensure 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 everything, and as soon as you have filed the paperwork it’s far too late to change your mind.

If you believe when it comes to Bankruptcy, your circumstance is more detailed than what is touched on above, then I would strongly advise that you get professional guidance in Ipswich.

If you wish to learn more about what to do, where to turn and what complications to ask about with Bankruptcy, then don’t wait to get in touch with Bankruptcy Experts Ipswich on 1300 795 575, or explore our website: www.bankruptcyexpertsipswich.com.au.

Copyrights © Bankruptcy Experts Ipswich.