- Nov 15, 2016
Income is always a concern with Bankruptcy, so I want to talk you through a couple of the considerations around income and Insolvency
Bankruptcy in Cairns is always going to be complicated and frustrating, specifically because it includes cash and people’s livelihoods. People always ask us how bankruptcy will affect their income, because bankruptcy is going to restrict just how much money you can make. When it comes to Bankruptcy it is usually going to consider your complete income and the amount of dependants that you have
How is this determined?
You should understand about Bankruptcy that there are in fact established quantities that you can earn– yes, this means that you will not be left penniless, but neither does it mean that you can be earning a six figure paycheck and not be repaying insolvency debt.
Net income is the pre-tax/ in the hand amount you gain annually.
A dependant is a person who lives with you and makes no more than $3,124 per year (regardless of their age).
Could this be increased?
Yes, under some situations you can get a hardship variant that raises the threshold amount, if you have monetary commitments in Cairns like medical, child care, substantial travel to and from work, or a situation where your partner used to work but is no longer able to support the household income level.
Could my boss be told about this?
No, the good thing about Bankruptcy is that your employer will not be informed when you apply for bankruptcy.
What about child support?
Child support is always taken into consideration in personal bankruptcy– this indicates 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 obtained from your net income amount, for example if you provide $5,000 child support yearly and you have no dependents living with you then your changed net income limit will be $55,332.10.
What about tax-time, do I still get cash back?
If one of your creditors is the ATO (for unpaid taxes), then your tax refund will very likely be taken by the ATO when you are insolvent to contribute towards your tax debt. If you do not have a tax debt then you will keep your tax refund so long as that doesn’t take you over your threshold income level caps.
So what is regarded as income?
Certainly there are a lot more concerns surrounding earnings and Bankruptcy– even more so because many individuals will argue with what is thought of as ‘income’- if you’re not sure, it’s a good idea to get professional bankruptcy advice in Cairns.
Without a doubt among the most essential things about Bankruptcy is that you need to get recommendations as early as feasible because it will make sure you are taking the right way. It is always going to be better to be over prepared because when it comes to Bankruptcy knowledge is power, and as soon as you have submitted the documentation it’s far too late to change your decision.
If you believe when it comes to Bankruptcy, your case is more complex than what is stated above, then I would strongly advise that you get professional advice in Cairns.
If you would like to learn more about what to do, where to turn and what complications to inquire about with Bankruptcy, then don’t think twice to contact Bankruptcy Experts Cairns on 1300 795 575, or explore our website: www.bankruptcyexpertscairns.com.au.