Bankruptcy in Geelong – What happens to my income?
Income is always a concern with Bankruptcy, so I want to talk you through a few of the considerations around income and Insolvency
Bankruptcy in Geelong is always going to be complicated and frustrating, specifically because it involves money and people’s livelihoods. Many people always ask us how bankruptcy will impact their salary, because insolvency is going to restrict just how much you can make. When it concerns Bankruptcy it is mainly going to consider your complete income and the number of dependants that you have
How is this calculated?
You should understand about Bankruptcy that there are really established amounts that you could earn– yes, this means that you can not be left penniless, but nor does it mean that you can be earning a six figure salary and not actually be paying back insolvency debt.
Net income is the pre-tax/ in the hand quantity you make annually.
A dependant is a person who lives with you and earns under $3,124 per year (regardless of their age).
Could this be increased?
Yes, under some situations you can get a hardship variant that brings up the threshold quantity, if you have monetary commitments in Geelong like medical, childcare, substantial travel to and from your job, or a situation where your partner used to be employed but is now not able to support the household income.
Will my boss be told about this?
No, the advantage about Bankruptcy is that your employer will not be advised when you declare bankruptcy.
What about child support?
Child support is always taken into consideration in insolvency– this means that if you receive child support, that is not factored in as income. Having said that if you pay child support this will be often taken out from your net income amount, for example if you supply $5,000 child support each year and you have no dependents residing with you then your altered 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 unsettled taxes), then your tax refund will most likely be taken by the ATO whilst you are insolvent to chip in toward your tax debt. If you don’t have a tax bill then you will keep your tax return provided that doesn’t take you over your threshold income caps.
So what is regarded as income?
There are a lot more concerns surrounding earnings and Bankruptcy– particularly because a lot of individuals will justify with what is taken as ‘income’- if you’re uncertain, it’s a good idea to get specialist insolvency advice in Geelong.
By far among the most essential things about Bankruptcy is that you ought to get suggestions as early as possible because it will ensure you are taking the right way. It is always going to be better to be over prepared because when it concerns Bankruptcy knowledge is everything, and as soon as you have submitted the documentation 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 recommend that you get professional guidance in Geelong.
If you would love to learn more about what to do, where to turn and what troubles to ask about with Bankruptcy, then don’t think twice to consult with Bankruptcy Experts Geelong on 1300 795 575, or explore our website: www.bankruptcyexpertsgeelong.com.au.