Bankruptcy in Canberra - Will my income be influenced if I go bankrupt?

Bankruptcy Canberra is a complicated process, and you have 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 restraint 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 the amount 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 sum 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 request a hardship variation that increases the threshold amount, if you have financial strains in Canberra like medical, child care, serious travel to and from your job, or a scenario where your spouse used to work but is not able to support the family income.

Some of the intriguing parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, Child support is always looked at 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 more issues encompassing income and what is or isn't regarded as income - if you're not exactly sure, it's recommended to get experienced advice. The reason you must consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases not an economically sensible option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will 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 as long as that doesn't take you over your threshold income caps.

If you think when it comes to Bankruptcy, your situation is more challenging, then just get experienced advice in Canberra. 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, because once you have filed the paperwork it's too late to change your mind.

If you wish to find out more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to contact Fresh Start Solutions Canberra on 1300 818 575, or check out our website: freshstartsolutions.com.au/bankruptcy-Canberra