Bankruptcy in Hobart – What happens to my income?

Income is usually a concern with Bankruptcy, so I wish to talk you through a few of the factors to consider around income and Insolvency

what-happen-to-my-income

Bankruptcy in Hobart is always going to be complex and frustrating, particularly because it involves money and people’s livelihoods. Many people regularly ask us how bankruptcy will certainly influence their earnings, because insolvency is going to restrict just how much money you can make. When it involves Bankruptcy it is mostly going to take into consideration your total income and the number of dependants that you have

How is this calculated?

You should learn about Bankruptcy that there are in fact set quantities that you could make– yes, this means that you will not be left penniless, but nor does this mean that you can be earning a six figure salary and not be repaying personal bankruptcy debt.

Net income is the pre-tax/ in the hand amount you gain annually.

A dependant is a person who lives with you and makes under $3,124 annually (regardless of their age).

Can this be raised?

Yes, under some situations you can get a hardship variant that increases the threshold quantity, if you have monetary commitments in Hobart like medical, child care, considerable travel to and from work, or a situation where your partner used to work but is no longer able to support the household income level.

Will my boss be told about this?

No, the benefit about Bankruptcy is that your employer will not be informed when you apply for bankruptcy.

What about child support?

Child support is always taken into consideration in insolvency– this means that if you receive child support, that is not factored in as earnings. Having said that if you pay child support this will be typically taken out from your net income amount, for example if you supply $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.

What about tax-time, do I still get cash back?

If one of your creditors is the ATO (for unsettled taxes), then your tax refund will most likely be taken by the ATO whilst you are insolvent to chip in towards your tax debt. If you don’t have a tax bill then you will retain your tax refund so long as that doesn’t take you over your threshold income level caps.

So what is regarded as income?

Certainly there are a lot more situations involving income and Bankruptcy– especially because so many people will justify with what is considered ‘income’- if you’re unsure, it’s a great idea to get professional personal bankruptcy advice in Hobart.

By far one of the most crucial aspects of Bankruptcy is that you need to get advice as soon as practical because it will make sure you are taking the best way. It is always going to be better to be over prepared because when it concerns Bankruptcy knowledge is power, and once you have submitted the paperwork it’s far too late to change your decision.

If you believe when it comes to Bankruptcy, your circumstance is more complicated than what is touched on above, then I would highly suggest that you get expert advice in Hobart.

If you wish to learn more about what to do, where to turn and what concerns to inquire about with Bankruptcy, then don’t wait to consult with Bankruptcy Experts Hobart on 1300 795 575, or explore our website: www.bankruptcyexpertshobart.com.au.

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