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

Bankruptcy Port Macquarie is a complex process, and you ought 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 need to know about going bankrupt is there is no regulation on how much you can earn. However, I will point out that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to keep in mind about this area of Bankruptcy is 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 annually. 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 increases the threshold amount, if you have financial commitments in Port Macquarie such as medical, child care, sizable travel to and from work, or a scenario where your spouse used to work but is no longer able to support the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be informed 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 thought about, for example if you provide $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 many more issues involving income and what is or isn't regarded as income - if you're not sure, it's a good idea to get qualified advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases 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 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 limitations.

If you think when it comes to Bankruptcy, your situation is more complex, then please get professional advice in Port Macquarie. I may sound like a broken record, but bear in mind that it's always a good idea to work through these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Port Macquarie on 1300 795 575, or explore our website: bankruptcyexpertsPortmacquarie.com.au.