Bankruptcy in Darwin– What happens to my income?

Bankruptcy in Darwin– What happens to my income?

Salary is always a worry with Bankruptcy, so I would like to talk you through some of the factors to consider around income and going bankrupt

what-happen-to-my-income

Bankruptcy in Darwin is always going to be complex and troublesome, especially because it involves money and people’s livelihoods. A lot of people regularly ask us how bankruptcy will certainly influence their salary, because insolvency is going to limit just how much you can make. When it comes to Bankruptcy it is usually going to think about your total income and the number of dependants that you have

How is this determined?

You should learn about Bankruptcy that there are really established amounts that you could make– yes, this suggests that you can not be left penniless, but neither does this mean that you might be making a six figure paycheck and not be repaying bankruptcy debt.

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

A dependant is a person who lives with you and makes below $3,124 annually (regardless of their age).

Could this be increased?

Yes, under some conditions you can get a hardship variation that brings up the threshold quantity, if you have financial obligations in Darwin like medical, childcare, considerable travel to and from work, or a situation where your partner used to be employed but is now not able to assist the household income.

Will my boss be informed about this?

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

What about child support?

Child support is always considered in personal bankruptcy– this means 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 sum, for example if you provide $5,000 child support yearly 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 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 while you are insolvent to contribute toward your tax bill. If you do not have a tax bill then you will retain your tax refund so long as that doesn’t take you over your threshold income caps.

So what is considered income?

Certainly there are a lot more concerns surrounding salary and Bankruptcy– particularly because numerous individuals will justify with what is taken as ‘income’- if you’re unsure, it’s a good idea to get professional insolvency advice in Darwin.

Easily one of the most crucial things about Bankruptcy is that you must get suggestions as quickly as possible as it will guarantee you are taking the best path. It is always going to be better to be over prepared due to the fact that when it concerns Bankruptcy knowledge is power, and as soon as you have filed the paperwork it’s far too late to change your decision.

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

If you wish to learn more about what to do, where to turn and what concerns to inquire about with Bankruptcy, then don’t hesitate to call Bankruptcy Experts Darwin on 1300 795 575, or explore our website: www.bankruptcyexpertsdarwin.com.au.

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