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

Bankruptcy Darwin is a intricate process, and you ought to ensure you get the right guidance. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you need 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 first thing you need to keep in mind 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 sum 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 make an application for a hardship variation that increases the threshold amount, if you have financial commitments in Darwin such as medical, child care, serious travel to and from work, or a scenario where your partner used to work but is not able to support the family income.

Some of the interesting parts of Bankruptcy is that your employer will not be alerted 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 surrounding income and what is or isn't considered income - if you're unsure, it's recommended to get professional advice. The reason you 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 will be taken by the ATO whilst 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 feel like when it comes to Bankruptcy, your case is more complicated, then simply get specialist advice in Darwin. I may seem like a broken record, but keep in mind that it's always a good idea to work through these options prior to declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.

If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Fresh Start Solutions Darwin on 1300 818 575, or check out our website: www.freshstartsolutions.com.au/bankruptcy-Darwin