Bankruptcy Advice Melbourne is a confusing process, and you need to ensure you get the right guidance. 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 constraint 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 very first thing you need to understand 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 quantity 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 make an application for a hardship variation that raises the threshold amount, if you have financial commitments in Melbourne like medical, child care, serious travel to and from work, or a situation where your partner used to work but is no longer able to support the household income.
Some of the informative parts of Bankruptcy Advice is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into account 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 a good idea to get qualified 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 viable option.
If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO while you are bankrupt to contribute 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 caps.
If you believe that when it comes to Bankruptcy Advice, your situation is more intricate, then please get expert advice in Melbourne. I may seem like a broken record, but remember that it’s always a good idea to work through these options before declaring bankruptcy, because once you have filed the paperwork it’s too late to change your mind.
If you want to learn more about what to do, where to turn and what issues to ask about Bankruptcy Advice, then don’t hesitate to contact Bankruptcy Experts Melbourne on 1300 795 575, or visit our website:bankruptcyMelbourne.com.