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

Bankruptcy Townsville is a confusing process, and you have to ensure you get the right recommendations. 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 restraint on how much you can earn. However, I will point out that your income is a significant consideration when working through when it comes to Bankruptcy.

The first thing you need to know 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 amount of money you earn annually. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can look for a hardship variation that increases the threshold amount, if you have costs in Townsville like medical, child care, sizable travel to and from your job, or a circumstance where your spouse used to work but is not able to add to the household income.

Some of the informative parts of Bankruptcy is that your employer will not be told 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 a lot more issues involving income and what is or isn't regarded as income - if you're not exactly sure, it's best to get qualified advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically viable 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 so long as that doesn't take you over your threshold income caps.

If you think when it comes to Bankruptcy, your circumstance is more complicated, then simply get experienced advice in Townsville. 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, since 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 issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Townsville on 1300 795 575, or visit our website: bankruptcyexpertsTownsville.com.au.