Bankruptcy in Gold Coast - Will my income be influenced if I go bankrupt?

Bankruptcy Gold Coast is a complicated process, and you have to make sure you get the right advice. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you need to know about going bankrupt is there is no regulation 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 very first thing you need to understand about this area of Bankruptcy is the amount 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 you earn each year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can apply for a hardship variation that increases the threshold amount, if you have financial commitments in Gold Coast such as medical, child care, substantial travel to and from your job, or a circumstance where your spouse used to work but is no longer able to add to the family income.

Some of the interesting parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into consideration 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 pay $5,000 child support each year and you have no dependents living with you then your amended net income limit will be $55,332.10.

There are a lot more issues encompassing income and what is or isn't considered income - if you're unsure, it's ideal to get specialist advice. The reason you will need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances 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 chip in 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 complex, then feel free to get qualified advice in Gold Coast. I may seem like a broken record, but bear in mind that it's always a good idea to work through these options prior to declaring bankruptcy, due to the fact that once you have filed the paperwork it's too late to change your mind.

If you want to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: bankruptcyexpertsGoldcoast.com.au.