Employment Myths

Incorrect, in fact, one of the main attributes of bankruptcy is that it protects your wages, to make sure you have money to keep a roof over your head and continue living your life.

  1. You can file for bankruptcy if you cannot pay your debts and live in Australia. It is as simple as that.
  2. If you do not live in Australia you can only file for bankruptcy if you have a residence or business in Australia.
  3. There is no filing fee and no minimum amount you must owe.

Incorrect, if you are unable to pay your debts and live in Australia or have property or operate a business in Australia, you are eligible to file for bankruptcy. Bankruptcy protects your wages. If you are a high-income earner, you may have to pay a small percentage of your income to your bankrupt estate, but the bulk of your income is protected for you to live, save, and plan your future.

High income and bankruptcy – what you need to know:
  1. If you are a high-income earner, monies to be paid to your bankrupt estate will depend on your level of income and number of dependents.
  2. A dependent is someone whose income does not exceed $3,741, resides with you, and receives your economic support.
  3. As a guide, a dependent could include your spouse who does not work, your children who reside with you, or you share joint custody with your ex-partner.
  4. If you are a high-income earner, we recommend you give us a call on 1300 764 197 to discuss your circumstances, work out whether you would have to pay income contributions and if that is your situation, we will give you our recommendations based on your circumstances.