Bankruptcy in Sunshine Coast - Will my income be changed if I go bankrupt?

Bankruptcy Sunshine Coast is a complicated process, and you ought to be sure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you have to know about going bankrupt is there is no limitation on how much you can earn. However, I will point out that your income is a serious consideration when working through when it comes to Bankruptcy.

The 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 portion 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 apply for a hardship variation that increases the threshold amount, if you have financial strains in Sunshine Coast like medical, child care, significant travel to and from your job, or a situation where your spouse used to work but is not able to add to the household income.

Some of the intriguing parts of Bankruptcy is that your employer will not be notified 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 provide $5,000 child support each year and you have no dependents living with you then your altered net income limit will be $55,332.10.

There are a lot more issues involving income and what is or isn't regarded as income - if you're not exactly sure, it's ideal to get professional advice. The reason you need to 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 may be taken by the ATO whilst 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 caps.

If you think when it comes to Bankruptcy, your situation is more challenging, then just get experienced advice in Sunshine Coast. I may seem like a broken record, but bear in mind that it's always a great 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 wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Sunshine Coast .