Many people think and are told that if you go bankrupt you will lose part of your income. For most people who go bankrupt this is not true. There is a protected threshold amount which is yours to keep. Currently this amount is $1,074.49 after tax per week for a person with no dependants.
The more dependants you have the higher the threshold (protected amount).
Number of dependants Income limit, weekly & yearly after tax.
Dependants Weekly after tax threshold Yearly after tax
0 $1,074.49 $55,837.60
1 $1,267.08 $65,888.37
2 $1,363.73 $70,913.75
3 $1,417.42 $73,705.63
4 $1,438.89 $74,822.38
over 4 $1,460.37 $75,939.14
If you need to go bankrupt and you are worried about income call us and we will explain how it will affect you. Most people are surprised at how generous the protected amounts are.
For a free friendly chat call us During office hours:
Monday to Friday – 9.00am to 5.00pm
1300 163 017
Australia wide – We can help you wherever you are in Australia.