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

Bankruptcy Cairns is a intricate process, and you need to ensure you get the right insight. 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 constraint on how much you can earn. However, I will point out that your income is a major consideration when working through when it comes to Bankruptcy.

The first thing you need to understand 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 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 request a hardship variation that increases the threshold amount, if you have costs in Cairns such as medical, child care, significant travel to and from work, or a circumstance where your partner used to work but is no longer able to add to the family income.

Some of the insightful parts of Bankruptcy is that your employer will not be informed when you file for bankruptcy. Also, Child support is always taken into account 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 many more issues encompassing income and what is or isn't considered income - if you're not exactly sure, it's ideal to get professional advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically practical 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 provided that doesn't take you over your threshold income caps.

If you think when it comes to Bankruptcy, your situation is more complicated, then feel free to get professional advice in Cairns. I may seem like a broken record, but bear in mind that it's always a great idea to overcome these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you would like to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Cairns on 1300 795 575, or explore our website: bankruptcyexpertsCairns.com.au.