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

Bankruptcy Gladstone is a challenging process, and you need to be sure 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 need to know about going bankrupt is there is no restriction 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 very first thing you need to keep in mind 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 quantity 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 request a hardship variation that raises the threshold amount, if you have costs in Gladstone such as medical, child care, substantial travel to and from your job, or a circumstance where your partner used to work but is not able to contribute to the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be alerted when you file for bankruptcy. Also, Child support is always looked at 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 modified net income limit will be $55,332.10.

There are more issues involving income and what is or isn't considered income - if you're not exactly sure, it's best to get qualified 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 situations 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 believe that when it comes to Bankruptcy, your circumstance is more intricate, then just get expert advice in Gladstone. I may sound like a broken record, but remember that it's always a great idea to work through these options prior to declaring bankruptcy, because once you have filed the paperwork it's too late to change your mind.

If you would like to find out more about what to do, where to turn and what issues to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: bankruptcyexpertsGladstone.com.au.