Bankruptcy in Geraldton - Will my income be changed if I go bankrupt?

Bankruptcy Geraldton is a challenging process, and you need to ensure you get the right insight. 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 rule 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.

The very first thing you need to understand about this area of Bankruptcy is the amount 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 per 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 costs in Geraldton such as medical, child care, significant travel to and from your job, or a circumstance where your partner used to work but is not able to add to the family income.

Some of the interesting parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always considered 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 pay $5,000 child support each year and you have no dependents living with you then your amended net income limit will be $55,332.10.

There are a lot more issues encompassing income and what is or isn't regarded as income - if you're not sure, it's ideal to get specialist advice. The reason you need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases not an economically sensible option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO whilst you are bankrupt to add toward your tax bill. If you don't have a tax bill then you will keep your tax refund provided that doesn't take you over your threshold income restrictions.

If you feel like when it comes to Bankruptcy, your case is more challenging, then please get expert advice in Geraldton. I may seem like a broken record, but keep in mind that it's always a great idea to work through these options before declaring bankruptcy, since once you have filed the paperwork it's far too late to change your mind.

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