What happens to your income when in a bankrupty?
You can earn as much income as you are able to during Bankruptcy. Anybody who has told you that you are capped in what you can earn is incorrect.
The only restriction on your income during Bankruptcy is above the income threshold you have to contribute 50% of your net income back to your creditors. This income test is for the three years of your bankruptcy. Any amount earned below the income threshold you can keep. Your threshold is determined by how many dependents you have (i.e. children or people dependent upon your income).
The current net income (i.e. after tax) thresh holds are as follows:-
If you are considering your overall salary, a salary of $80,000 is approximately including super only about $200 over the threshold and therefor only liable to pay $100 per year.
Things that can decrease your payments are:-
- Child support payments
- Application for Hardship
Things that can increase your payments.
- Certain allowances
- Vehicle provided by work
- Bonus and or any other income
Feel free to call us on (02) 8488 3126 for an obligation free confidential discussion on Bankruptcy and how it will work for you.