Bankruptcy and Your Income - Nicholls Co

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Bankruptcy and Your Income

Bankruptcy protects your income

Bankruptcy is about resolving and getting you past your financial difficulties and on with life.

Your Income is Protected

Part and parcel of this process are to make sure you have money to live, pay your bills, and save in your bank account whilst you are bankrupt. It is for this reason that bankruptcy protects your income.

High-Income Earners

Only if you are in the fortunate position to be earning a high income, you may have to pay a small percentage of your income to your bankrupt estate during your bankruptcy.

If during bankruptcy your income drops, for some reason, to put your income below the threshold amount, then you will not be required to continue paying income contributions. This is to ensure you always have sufficient money to live. Conversely, if your income increases your income contributions will increase but the increased amount you are required to pay will remain a small percentage of your income.

Further Information

You may not be interested in how income contributions are calculated, or maybe you would prefer for us to explain it to you over the phone. We have no problem with that, give us a call and we will have a chat and answer your questions.

We have articles about the income contribution process when income contributions are required to be paid, and how they are calculated.

All the articles we have written regarding bankruptcy and your income are shown in the menu to the right for you to select and read at your discretion. As you read the articles, if you have any questions or would like to have a chat, we are here to help and are only a phone call away on 1300 060 122 or email helpdesk@nichollsco.com.au