Salary is always a worry with Bankruptcy, so I want to talk you through a couple of the considerations around income and Bankruptcy
Bankruptcy in Penrith is always going to be complicated and troublesome, specifically because it involves money and people’s livelihoods. A lot of people regularly ask us how bankruptcy will influence their earnings, because bankruptcy is going to limit just how much money you can make. When it comes to Bankruptcy it is mostly going to consider your overall income and the number of dependants that you have
How is this determined?
You ought to know about Bankruptcy that there are actually established quantities that you can earn– yes, this suggests that you will not be left penniless, but nor does it mean that you might be earning a six figure income and not be repaying insolvency debt.
Net income is the pre-tax/ in the hand amount you make annually.
A dependant is somebody who lives with you and earns less than $3,124 per year (regardless of their age).
Can this be raised?
Yes, under some circumstances you can get a hardship variant that increases the threshold quantity, if you have financial commitments in Penrith like health-related, childcare, considerable travel to and from work, or a situation where your partner used to be employed but is no longer able to support the household income.
Could my boss be informed about this?
No, the good thing about Bankruptcy is that your employer will not be advised when you file for bankruptcy.
What about child support?
Child support is always considered in bankruptcy– this indicates that if you get child support, that is not factored in as earnings. Having said that if you pay child support this will be typically obtained from your net income sum, for instance if you supply $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 continue to get cash back?
If one of your creditors is the ATO (for unsettled taxes), then your tax refund will most likely be taken by the ATO whilst you are insolvent to chip in toward your tax debt. If you do not have a tax bill then you will retain your tax refund so long as that doesn’t take you over your threshold income level caps.
So what is considered income?
Certainly there are a lot more concerns surrounding earnings and Bankruptcy– especially because so many people will argue with what is taken as ‘income’- if you’re not exactly sure, it’s a great idea to get specialist insolvency advice in Penrith.
Easily among the most important aspects of Bankruptcy is that you should get suggestions as soon as practical because it will guarantee you are taking the correct way. It is always going to be best to be over prepared because when it concerns Bankruptcy knowledge is power, and as soon as you have submitted the documentation it’s far too late to change your mind.
If you believe when it comes to Bankruptcy, your situation is more intricate than what is touched on above, then I would highly recommend that you get professional advice in Penrith.
If you would love to find out more about what to do, where to turn and what issues to inquire about with Bankruptcy, then don’t wait to call Bankruptcy Experts Penrith on 1300 795 575, or explore our website: www.bankruptcyexpertspenrith.com.au.