Income is regularly a concern with Bankruptcy, so I wish to talk you through a number of the considerations around income and Bankruptcy
Bankruptcy in Gold Coast is always going to be complex and frustrating, especially because it includes money and people’s livelihoods. A lot of people regularly ask us how bankruptcy will affect their income, because insolvency is going to restrain just how much money you can make. When it concerns Bankruptcy it is usually going to consider your complete income and the number of dependants that you have
How is this calculated?
You ought to know about Bankruptcy that there are really established amounts that you may earn– yes, this indicates that you may not be left penniless, but neither does this mean that you could be making a six figure salary and not actually be paying back personal bankruptcy debt.
Net income is the pre-tax/ in the hand amount you make annually.
A dependant is a person who lives with you and makes no more than $3,124 annually (regardless of their age).
Can this be increased?
Yes, under some situations you can get a hardship variant that raises the threshold quantity, if you have financial commitments in Gold Coast like medical, child care, substantial travel to and from your job, or a circumstance where your partner used to be employed but is now not able to support the household income level.
Will 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 taken into account in insolvency– this means that if you receive child support, that is not factored in as income. Having said that if you pay child support this will be often obtained from your net income sum, for instance if you provide $5,000 child support yearly 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 likely be taken by the ATO whilst you are insolvent to contribute towards your tax bill. If you do not have a tax bill then you will keep your tax return so long as that doesn’t take you over your threshold income level caps.
So what is considered income?
There are a lot more situations involving earnings and Bankruptcy– especially because numerous people will argue with what is taken as ‘income’- if you’re uncertain, it’s a great idea to get specialist bankruptcy advice in Gold Coast.
Without a doubt some of the most important features of Bankruptcy is that you ought to get recommendations as quickly as possible because it will ensure you are taking the best path. It is always going to be best to be over prepared due to the fact that when it comes to Bankruptcy knowledge is power, and as soon as you have filed the paperwork it’s far too late to change your decision.
If you believe when it comes to Bankruptcy, your circumstance is more detailed than what is discussed above, then I would highly recommend that you get expert advice in Gold Coast.
If you wish to find out more about what to do, where to turn and what troubles to inquire about with Bankruptcy, then don’t wait to call Bankruptcy Experts Gold Coast on 1300 795 575, or explore our website: www.bankruptcyexpertsgoldcoast.com.au.