How Much Can I Earn When I’m Bankrupt?
If you’re considering bankruptcy, you may be wondering how it will affect your ability to earn an income. The good news is that you can still earn money while you’re bankrupt, and there’s no limit on how much you can earn. However, there are some restrictions on what you can do with your earnings.
At Brisbane Debt Solutions, we can help you understand how bankruptcy will affect your income and finances. We can also help you find the best solution for your situation.
Restrictions on Earnings During Bankruptcy
While you’re bankrupt, you must disclose all earnings from employment, self-employment, investments, property rental, and any other source. As mentioned earlier, there is no limit on how much you can earn. However, your trustee will be entitled to a portion of your earnings above a certain amount.
Depending on the number of dependents you have, the amount you can keep will differ. For example, a single person with no dependents earning $66,031.70 net or $10,000 after tax will have to pay $149.24 to their trustee each month.
A family with two dependents (e.g. a partner and child) earning $88,605.60 net or $15,000 after tax will have to pay $298.48 to their trustee each month.
Your trustee will use your earnings to pay off your creditors. However, if you have any spare money after your trustee has been paid, you’re free to use it as you wish.
Here are the threshold amounts based on the number of dependents you have:
| Number Of Dependants | *Annual Net Income |
|---|---|
| 0 | $56,031.00 |
| 1 | $69,657.41 |
| 2 | $74,970.26 |
| 3 | $77,921.84 |
| 4 | $79,102.48 |
| Over 4 | $80,283.11 |
Let Brisbane Debt Solutions Help You
At Brisbane Debt Solutions, we understand how difficult it can be to deal with debt. That’s why we offer a range of services to help you get back on track. We can help you negotiate with creditors, consolidate debts, and develop a budget that works for you. We can also help you understand your options if you’re considering bankruptcy.
If you’re struggling with debt, contact Brisbane Debt Solutions today. We can help you find a solution that works for you.