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 amount, which is always yours to keep. Currently this amount is $1,100.75 after tax per week for a person with no dependants.
The more dependants you have the higher the protected amount.
Here are the protected amounts. They are all after tax.
- Dependants Weekly Yearly
- 0 $1,100.75 $57,239.00
- 1 $1,298.89 $67,542.02
- 2 $1,397.95 $72,693.53
- 3 $1,452.99 $75,555.48
- 4 $1,475.01 $76,700.26
- over 4 $1,497.02 $77,845.04
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.