Bankruptcy Advice in Alice Springs – Will my income be changed if I go bankrupt?

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Bankruptcy Advice Alice Springs is a complicated process, and you should make sure you get the right suggestions. And when it comes to your income being affected, the answer to the question is maybe. The first thing you need to know about going bankrupt is there is no constraint on how much you can earn. However, I will point out that your income is a major consideration when working through when it comes to Bankruptcy Advice.

The very first thing you need to know about this area of Bankruptcy Advice 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 portion 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 look for a hardship variation that raises the threshold amount, if you have costs in Alice Springs like medical, child care, serious travel to and from your job, or a situation where your spouse used to work but is no longer able to add to the family income.

Some of the intriguing parts of Bankruptcy Advice is that your employer will not be told when you file for bankruptcy. Also, Child support is always taken into consideration in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you provide $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 many more issues encompassing income and what is or isn’t considered income – if you’re not exactly sure, it’s recommended to get experienced advice. The reason you need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances 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 add toward your tax bill. If you don’t have a tax bill then you will keep your tax refund so long as that doesn’t take you over your threshold income limits.

If you believe that when it comes to Bankruptcy Advice, your situation is more intricate, then please get expert advice in Alice Springs. I may sound like a broken record, but remember that it’s always a smart idea to work through these options prior to declaring bankruptcy, because once you have filed the paperwork it’s far too late to change your mind.

If you wish to find out more about what to do, where to turn and what issues to ask about Bankruptcy Advice, then feel free to contact Bankruptcy Experts Alice Springs on 1300 795 575, or check out our website:bankruptcyexpertsAliceSprings.com.au.

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