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

Bankruptcy Sydney is a challenging process, and you have to ensure you get the right insight. 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 restraint on how much you can earn. However, I will say that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to keep in mind 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 apply for a hardship variation that raises the threshold amount, if you have financial strains in Sydney 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 contribute to the household income.

Some of the useful parts of Bankruptcy is that your employer will not be informed 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 thought about, for example if you give $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 many more issues covering income and what is or isn't thought of as income - if you're not sure, it's ideal to get skilled 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 sensible option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely 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 as long as that doesn't take you over your threshold income limits.

If you think when it comes to Bankruptcy, your circumstance is more complex, then simply get qualified advice in Sydney. I may seem like a broken record, but keep in mind that it's always a great idea to work through these options before declaring bankruptcy, because once you have filed the paperwork it's too late to change your mind.

If you want to find out more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Sydney on 1300 795 575, or visit our website:bankruptcyexpertsSydney.com.au.