November 16, 2016Comments Closed

Bankruptcy in Mount Isa – What happens to my income?

Posted by:admin onNovember 16, 2016

Money is usually a worry with Bankruptcy, so I would like to talk you through a few of the points to consider around income and Insolvency

Bankruptcy Experts Mount Isa

Bankruptcy in Mount Isa is always going to be complex and troublesome, specifically because it includes money and people’s livelihoods. Many people regularly ask us how bankruptcy will impact their salary, because insolvency is going to restrict just how much money you can earn. When it comes to Bankruptcy it is mostly going to think about your overall income and the number of dependants that you have

How is this determined?

You ought to know about Bankruptcy that there are in fact set quantities that you could make– yes, this suggests that you can not be left penniless, but nor does this mean that you might be earning a six figure income and not be repaying bankruptcy debt.

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

A dependant is somebody who lives with you and earns no more than $3,124 annually (regardless of their age).

Could this be raised?

Yes, under some circumstances you can get a hardship variant that increases the threshold quantity, if you have monetary obligations in Mount Isa like health-related, childcare, considerable travel to and from work, or a circumstance where your partner used to be employed but is no longer able to assist the household income.

Could my boss be informed about this?

No, the good thing about Bankruptcy is that your workplace will not be advised when you file for bankruptcy.

What about child support?

Child support is always taken into consideration in bankruptcy– this indicates that if you get child support, that is not factored in as earnings. Having said that if you pay child support this will be typically taken out from your net income amount, for instance if you supply $5,000 child support every year and you have no dependents residing with you then your changed net income limit will be $55,332.10.

What about tax-time, do I continue to get money back?

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will most likely be taken by the ATO whilst you are bankrupt to chip in toward your tax debt. If you do not have a tax bill then you will retain your tax refund provided that doesn’t take you over your threshold income caps.

So what is regarded as income?

Certainly there are a lot more issues surrounding income and Bankruptcy– especially because numerous individuals will justify with what is thought of as ‘income’- if you’re uncertain, it’s a smart idea to get specialist personal bankruptcy advice in Mount Isa.

By far one of the most crucial aspects of Bankruptcy is that you should get guidance as early as feasible because it will make sure you are taking the right path. It is always going to be best to be over prepared because when it concerns Bankruptcy knowledge is power, and once you have filed the paperwork it’s far too late to change your mind.

If you think when it comes to Bankruptcy, your circumstance is more complex than what is discussed above, then I would highly suggest that you get professional guidance in Mount Isa.

If you wish to find out more about what to do, where to turn and what troubles to inquire about with Bankruptcy, then don’t think twice to contact Bankruptcy Experts Mount Isa on 1300 795 575, or explore our website: www.bankruptcyexpertsmountisa.com.au.

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