Bankruptcy in Mackay – What happens to my income?

Home/Article, bankruptcy, blog/Bankruptcy in Mackay – What happens to my income?

Bankruptcy in Mackay – What happens to my income?

Salary is usually a concern with Bankruptcy, so I would like to talk you through some of the considerations around income and Bankruptcy

what-happen-to-my-income

Bankruptcy in Mackay is always going to be complex and troublesome, specifically because it involves money and people’s livelihoods. People always ask us how bankruptcy will certainly affect their salary, because insolvency is going to restrain just how much you can make. When it concerns Bankruptcy it is mainly going to take into consideration your complete income and the amount of dependants that you have

How is this determined?

You ought to learn about Bankruptcy that there are really established amounts that you could earn– yes, this suggests that you may not be left destitute, but neither does it mean that you could be making a six figure income and not actually be paying back personal bankruptcy debt.

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

A dependant is someone who lives with you and makes no more than $3,124 each year (regardless of their age).

Can this be raised?

Yes, under some scenarios you can get a hardship variant that raises the threshold amount, if you have financial obligations in Mackay like medical, child care, substantial travel to and from your job, or a situation where your partner used to be employed but is no longer able to support the household income level.

Could my boss be informed about this?

No, the advantage about Bankruptcy is that your employer will not be informed when you declare bankruptcy.

What about child support?

Child support is always taken into account in personal bankruptcy– this indicates that if you get child support, that is not factored in as income. However if you pay child support this will be typically obtained from your net income amount, for instance if you provide $5,000 child support every year and you have no dependents living 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 while you are bankrupt to chip in toward your tax debt. If you do not have a tax debt then you will keep your tax return as long as that doesn’t take you over your threshold income level caps.

So what is considered income?

Certainly there are a lot more situations surrounding salary and Bankruptcy– particularly because so many people will argue with what is taken as ‘income’- if you’re unsure, it’s a good idea to get professional bankruptcy advice in Mackay.

By far one of the most important aspects of Bankruptcy is that you need to get recommendations as quickly as possible as it will guarantee you are taking the right way. It is always going to be better 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 scenario is more detailed than what is pointed out above, then I would strongly suggest that you get specialist recommendations in Mackay.

If you want to learn more about what to do, where to turn and what issues to inquire about with Bankruptcy, then don’t think twice to get in touch with Bankruptcy Experts Mackay on 1300 795 575, or explore our website: www.bankruptcyexpertsmackay.com.au.

By | 2016-11-16T00:10:19+00:00 November 16th, 2016|Article, bankruptcy, blog|0 Comments

About the Author: