Bankruptcy in Kalgoorlie - Will my income be altered if I go bankrupt?

Bankruptcy Kalgoorlie is a complex process, and you need 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 constraint on how much you can earn. However, I will mention that your income is a major consideration when working through when it comes to Bankruptcy.

The very 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 amount of money 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 raises the threshold amount, if you have costs in Kalgoorlie such as medical, child care, significant travel to and from work, or a scenario where your spouse used to work but is not able to add to the household 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 considered in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also thought about, for example if you pay $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 more issues surrounding income and what is or isn't regarded as income - if you're uncertain, it's recommended 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 cases 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 chip in toward your tax bill. If you don't have a tax bill then you will keep your tax refund so long as that doesn't take you over your threshold income limits.

If you think when it comes to Bankruptcy, your case is more complicated, then feel free to get expert advice in Kalgoorlie. I may sound like a broken record, but remember that it's always a good idea to work through these options before declaring bankruptcy, due to the fact that 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 questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Kalgoorlie on 1300 795 575, or go to our website: bankruptcyexpertsKalgoorlie.com.au.