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

Bankruptcy Perth is a confusing process, and you have to make sure you get the right suggestions. 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 restraint on how much you can earn. However, I will point out that your income is a significant consideration when working through when it comes to Bankruptcy.

The very first thing you need to learn about this area of Bankruptcy is just 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 amount of money 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 financial commitments in Perth such as medical, child care, substantial travel to and from your job, or a situation where your spouse used to work but is not able to support the household income.

Some of the insightful parts of Bankruptcy is that your employer will not be alerted when you file for bankruptcy. Also, Child support is always taken into account in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you give $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are a lot more issues covering income and what is or isn't considered income - if you're not exactly sure, it's ideal to get skilled advice. The reason you must consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically practical 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 provided that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your situation is more challenging, then just get qualified advice in Perth. I may seem like a broken record, but bear in mind that it's always a good idea to overcome these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you wish to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then feel free to contact Bankruptcy Advice Perth on 1300 879 867, or check out our website: bankruptcy-advice.com.au/Perth .