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

Bankruptcy Mildura is a complicated process, and you ought to be sure you get the right advice. 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 regulation on how much you can earn. However, I will mention that your income is a significant 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 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 increases the threshold amount, if you have costs in Mildura like medical, child care, major travel to and from your job, or a situation where your partner used to work but is not able to contribute to the family income.

Some of the useful 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 changed net income limit will be $55,332.10.

There are a lot more issues surrounding income and what is or isn't considered income - if you're uncertain, it's ideal to get professional 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 sensible 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 add 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 issue is more intricate, then simply get qualified advice in Mildura. I may sound like a broken record, but keep in mind that it's always a smart idea to overcome these options prior to declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you intend to find out more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Mildura on 1300 795 575, or go to our website:bankruptcyexpertsMildura.com.au.