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

Bankruptcy Mackay is a challenging process, and you need to make sure you get the right guidance. 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 first thing you need to know 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 sum you earn each year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can apply for a hardship variation that increases the threshold amount, if you have financial strains in Mackay such as medical, child care, substantial travel to and from your job, or a scenario where your partner used to work but is not 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 account 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 give $5,000 child support each year and you have no dependents living with you then your modified net income limit will be $55,332.10.

There are a lot more issues involving income and what is or isn't regarded as income - if you're unsure, it's a good idea to get skilled 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 may be taken by the ATO while you are bankrupt to contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund so long as that doesn't take you over your threshold income limits.

If you believe that when it comes to Bankruptcy, your circumstance is more complex, then just get specialist advice in Mackay. I may seem like a broken record, but keep in mind that it's always a smart idea to overcome these options prior to declaring bankruptcy, due to the fact that once you have filed the paperwork it's far too late to change your mind.

If you would like to find out more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Mackay on 1300 795 575, or explore our website: bankruptcyexpertsMackay.com.au.