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

Bankruptcy Darwin is a challenging process, and you should be sure 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 limit on how much you can earn. However, I will say that your income is a significant consideration when working through when it comes to Bankruptcy.

The very first thing you need to know about this area of Bankruptcy is 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 apply for a hardship variation that increases the threshold amount, if you have financial commitments in Darwin such as medical, child care, considerable travel to and from your job, or a situation where your partner used to work but is not able to contribute to the household income.

Some of the insightful parts of Bankruptcy is that your employer will not be notified 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 pay $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are much more issues surrounding income and what is or isn't thought of as income - if you're uncertain, it's ideal to get qualified 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 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 add 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 believe that when it comes to Bankruptcy, your situation is more challenging, then just get expert advice in Darwin. I may seem like a broken record, but keep in mind that it's always a great idea to overcome these options before declaring bankruptcy, because 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 issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Advice Darwin on 1300 879 867, or explore our website: bankruptcy-advice.com.au/Darwin .