How much can a bankrupt earn

In the unfortunate event of receiving a bankruptcy notice from the ATO, you have to pay your debt debt or negotiate a payment plan within 21 days. If you can’t do this, the ATO might file a creditor’s petition and force you into bankruptcy.

Bankruptcy is a legal declaration that a person cannot pay their current debts. If a person is declared bankrupt, almost all of their assets are handed to a bankruptcy trustee and then sold to pay off the declarant’s debts.

Typically, the ATO will not seek to bankrupt you if it is obvious that you can pay your tax debt within a reasonable timeframe.

If you are facing bankruptcy and tex debt, it is important to contact the professionals at Understanding Bankruptcy. We can provide you with sound advice on what to do when faced with tax debt bankruptcy.

Has the ATO Served You A Creditor’s Petition?

A creditor’s petition is an application made by the ATO to the Federal Magistrates Court or Federal Court for a sequestration order to declare you legally bankrupt. The ATO and other tax authorities can file a creditor’s petition if you have committed an “act of bankruptcy”. This includes failing to comply with a bankruptcy notice. They can do this within the preceding six months.

If the sequestration order is issued by the Court, you will then become legally bankrupt and a trustee will be appointed to manage and maintain your estate. This usually involves the sale of the bulk of your personal assets to repay your creditors, including the ATO.

The Court will not issue the bankruptcy order if you can show that you can immediately pay off your debts to the ATO.

It Is Important To Know What To Do Next

If you have received a bankruptcy notice from the ATO you have to act quickly. As time goes on, the more and more difficult it will become to be able to negotiate the situation in your favour.

Understanding Bankruptcy, as a trusted bankruptcy advice counsellor, can help you gain a proper comprehension of the situation and what to do next. Our founder, Slade McInerney, has himself experienced bankruptcy, and focuses his attentions on ensuring other people don’t experience similar hardships associated with these financial burdens.

We truly understand your predicament and the pressure it places upon you. As such, we strive to lend a friendly and compassionate ear to our clients, as well as provide them with sound advice on what happens next and, more importantly, what you have to do next.

Don’t delay, contact our friendly team of experts today. We are committed to providing Australians in this unfortunate situation with an impeccable standard of service, and will be happy to answer any questions you have or provide you with free, obligation-free advice on your next steps.

Call our team on 1300 794 492 or fill out an enquiry form on our contact page. We will get back to you as soon as possible and with all the information you require.

Unfortunately, when it comes to the question of how much a bankrupt can earn, there are some drawbacks. Furthermore, the financial repercussions of bankruptcy can adversely affect you immediately and in the future. This being said, it can provide you with a much needed fresh start.

Depending on your situation, bankruptcy can do one of the following:

  • Provide you with a fresh start and have a positive impact on your life.
  • Present significant repercussions including making it difficult for you to obtain credit for long periods of time; loss of home and other assets as well as limit future employment options.

For the first option to be achieved, it is imperative to get in contact with a bankruptcy advice counsellor. Understanding Bankruptcy has your best interests and your financial situation close at heart. Having experienced the pitfalls of bankruptcy our owner, Slade McInerney, provides a compassionate ear and provides sound advice on your options after making a declaration of bankruptcy.

Contact Us Today

For free and obligation-free advice on your financial situation post-bankruptcy declaration, contact the Understanding Bankruptcy professionals. We are dedicated to helping people considering making this big decision understand their options and what the future faces.

We understand the pressure on you and lend a compassionate, trusting ear as well as the necessary advice to getting back on and staying on your feet.

Call us on 1300 794 492 or submit an enquiry form on our contact page and we will get back to you with all the information you require regarding your post-bankruptcy declaration situation and how we can help you stay financially viable in the future.

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