Bankruptcy in Coffs Harbour - Will my income be affected if I go bankrupt?

Bankruptcy Coffs Harbour is a intricate process, and you need to ensure you get the right insight. And when it comes to your income being affected, the answer to the question is maybe. The first thing you have to know about going bankrupt is there is no constraint on how much you can earn. However, I will mention that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to understand 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 per year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can get a hardship variation that raises the threshold amount, if you have costs in Coffs Harbour such as medical, child care, considerable travel to and from your job, or a situation where your spouse used to work but is not able to support the family income.

Some of the useful parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, Child support is always considered 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 provide $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 covering income and what is or isn't thought of as income - if you're not sure, it's ideal to get specialist advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund can 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 limitations.

If you think when it comes to Bankruptcy, your issue is more challenging, then please get professional advice in Coffs Harbour. I may seem like a broken record, but remember that it's always a good idea to overcome these options prior to declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Coffs Harbour on 1300 795 575, or check out our website: bankruptcyexpertsCoffs Harbour.com.au.