Bankruptcy in Sydney – What happens to my income?
Salary is always a worry with Bankruptcy, so I would like to talk you through some of the points to consider around income and Insolvency
Bankruptcy in Sydney is always going to be complicated and frustrating, specifically because it includes money and people’s livelihoods. A lot of people always ask us how bankruptcy will impact their earnings, because bankruptcy is going to limit just how much you can generate. When it comes to Bankruptcy it is usually going to think about your overall income and the amount of dependants that you have
How is this determined?
You need to understand about Bankruptcy that there are in fact established amounts that you can make– yes, this means that you will certainly not be left destitute, but neither does this mean that you could be earning a six figure income and not actually be paying back personal bankruptcy debt.
Net income is the pre-tax/ in the hand quantity you make annually.
A dependant is someone who lives with you and earns under $3,124 per year (regardless of their age).
Can this be raised?
Yes, under some scenarios you can get a hardship variation that brings up the threshold quantity, if you have financial commitments in Sydney like health-related, child care, considerable travel to and from your job, or a situation where your partner used to be employed but is no longer able to support the household income.
Will my boss be told about this?
No, the benefit 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 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 figure, for example if you provide $5,000 child support each year and you have no dependents residing with you then your changed 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 most likely be taken by the ATO when you are insolvent to chip in towards your tax bill. If you do not have a tax debt 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?
Certainly there are a lot more situations involving income and Bankruptcy– particularly because many individuals will suggest with what is considered ‘income’- if you’re not sure, it’s a smart idea to get specialist insolvency advice in Sydney.
By far one of the most crucial aspects of Bankruptcy is that you need to get guidance as soon as feasible as it will make sure you are taking the correct way. It is generally going to be better to be over prepared because when it concerns Bankruptcy knowledge is everything, and as soon as you have filed the documentation it’s far too late to change your decision.
If you think when it comes to Bankruptcy, your circumstance is more detailed than what is discussed above, then I would strongly recommend that you get expert guidance in Sydney.
If you would love to find out more about what to do, where to turn and what troubles to ask about with Bankruptcy, then don’t think twice to contact Bankruptcy Experts Sydney on 1300 795 575, or explore our website: www.bankruptcyexpertssydney.com.au.