Bankruptcy in Dubbo - Will my income be altered if I go bankrupt?

Bankruptcy Dubbo is a challenging process, and you have to make sure 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 need to know about going bankrupt is there is no limitation on how much you can earn. However, I will mention that your income is a serious consideration when working through when it comes to Bankruptcy.

The very first thing you need to understand about this area of Bankruptcy 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 amount 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 look for a hardship variation that increases the threshold amount, if you have costs in Dubbo such as medical, child care, significant travel to and from work, or a situation where your partner used to work but is not able to support the household 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 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 more issues surrounding income and what is or isn't considered income - if you're not sure, it's recommended to get qualified advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances 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 contribute 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 caps.

If you feel like when it comes to Bankruptcy, your issue is more complicated, then simply get specialist advice in Dubbo. I may sound like a broken record, but keep in mind that it's always a good idea to overcome these options prior to declaring bankruptcy, since once you have filed the paperwork it's far too late to change your mind.

If you intend to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Dubbo on 1300 795 575, or explore our website:bankruptcyexpertsDubbo.com.au.