Bankruptcy in Adelaide – What happens to my income?

Home/bankrupt, blog/Bankruptcy in Adelaide – What happens to my income?

Bankruptcy in Adelaide – What happens to my income?

Salary is regularly a concern with Bankruptcy, so I wish to talk you through a number of the factors to consider around income and Bankruptcy

what-happen-to-my-income

Bankruptcy in Adelaide is always going to be complicated and frustrating, particularly because it includes cash and people’s livelihoods. People regularly ask us how bankruptcy will affect their salary, because insolvency is going to restrain just how much you can earn. When it comes to Bankruptcy it is mostly going to take into consideration your complete income and the number of dependants that you have

How is this calculated?

You need to learn about Bankruptcy that there are really set quantities that you can earn– yes, this indicates that you can not be left broke, but nor does this mean that you could be making a six figure paycheck and not be paying back bankruptcy debt.

Net income is the pre-tax/ in the hand quantity you earn each year.

A dependant is somebody who lives with you and earns less than $3,124 each year (regardless of their age).

Can this be raised?

Yes, under some scenarios you can get a hardship variation that increases the threshold quantity, if you have monetary commitments in Adelaide like medical, child care, substantial travel to and from work, or a situation where your partner used to be employed but is now not able to support the household income level.

Could my boss be informed about this?

No, the benefit about Bankruptcy is that your workplace will not be advised when you apply for bankruptcy.

What about child support?

Child support is always taken into consideration in insolvency– this indicates that if you get child support, that is not factored in as earnings. However if you pay child support this will be typically obtained from your net income amount, for example if you provide $5,000 child support every year and you have no dependents living 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 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 debt then you will keep your tax refund 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 concerns involving earnings and Bankruptcy– especially because many individuals will justify with what is thought of as ‘income’- if you’re not exactly sure, it’s a good idea to get expert insolvency advice in Adelaide.

By far among the most essential aspects of Bankruptcy is that you need to get suggestions as early as possible as it will make sure you are taking the best way. It is generally going to be best to be over prepared because when it concerns Bankruptcy knowledge is everything, and once you have filed the paperwork it’s far too late to change your decision.

If you believe when it comes to Bankruptcy, your situation is more complex than what is discussed above, then I would highly suggest that you get specialist advice in Adelaide.

If you would like to find out more about what to do, where to turn and what concerns to inquire about with Bankruptcy, then don’t hesitate to consult with Bankruptcy Experts Adelaide on 1300 795 575, or explore our website: www.bankruptcyexpertsadelaide.com.au.

By | 2016-11-15T01:39:46+00:00 November 15th, 2016|bankrupt, blog|0 Comments

About the Author: