Bankruptcy in Newcastle – What happens to my income?
Money is usually a concern with Bankruptcy, so I wish to talk you through a few of the considerations around income and going bankrupt
Bankruptcy in Newcastle is always going to be complex and frustrating, specifically because it includes cash and people’s livelihoods. Many people always ask us how bankruptcy will affect their salary, because bankruptcy is going to limit just how much you can generate. When it involves Bankruptcy it is usually going to think about your overall income and the amount of dependants that you have
How is this calculated?
You should understand about Bankruptcy that there are really set quantities that you could earn– yes, this means that you can not be left destitute, but neither does it mean that you could be making a six figure salary and not be paying back insolvency 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 each year (regardless of their age).
Could this be raised?
Yes, under some situations you can get a hardship variation that brings up the threshold amount, if you have financial commitments in Newcastle like health-related, childcare, considerable travel to and from work, or a situation where your partner used to work but is no longer able to support the household income level.
Will my boss be informed about this?
No, the advantage about Bankruptcy is that your workplace will not be informed when you apply for bankruptcy.
What about child support?
Child support is always taken into account in personal bankruptcy– this means that if you receive child support, that is not factored in as income. Having said that if you pay child support this will be typically obtained from your net income amount, for instance if you provide $5,000 child support yearly and you have no dependents living with you then your altered net income limit will be $55,332.10.
What about tax-time, do I still get cash back?
If one of your creditors is the ATO (for unsettled taxes), then your tax refund will very likely be taken by the ATO whilst you are bankrupt to contribute towards your tax bill. If you do not have a tax bill then you will retain your tax return so long as that doesn’t take you over your threshold income caps.
So what is considered income?
Certainly there are a lot more concerns surrounding income and Bankruptcy– even more so because so many individuals will suggest with what is taken as ‘income’- if you’re unsure, it’s a smart idea to get professional insolvency advice in Newcastle.
By far some of the most essential features of Bankruptcy is that you ought to get guidance as soon as feasible as it will make sure you are taking the best way. It is always going to be better to be over prepared due to the fact that when it comes to Bankruptcy knowledge is everything, and as soon as you have submitted the documentation it’s far too late to change your decision.
If you think when it comes to Bankruptcy, your case is more complicated than what is discussed above, then I would highly advise that you get professional advice in Newcastle.
If you would love to learn more about what to do, where to turn and what issues to inquire about with Bankruptcy, then don’t think twice to consult with Bankruptcy Experts Newcastle on 1300 795 575, or explore our website: www.bankruptcyexpertsnewcastle.com.au.