VOLUNTARY BANKRUPTCY

PART 4 OF 5.
INCOME WHILE BANKRUPT.

If your after tax income exceeds a certain amount, you will have to pay contributions from your income to your trustee.The rate is approx 3 1/2 times the maximum pension rate.( the amount will change in September 2010 so will update in October 2010)
If you are a low income earner you will not have to pay contributions. However, you may make voluntary payments to your trustee.
You will be required to pay one half of the amount by which your after tax income exceeds the prescribed threshold amount eg. fifty cents of every one dollar of the excess amount.

Calculating are very complex and require an expert.
Some variables are
-dependants.
-gross income.
-medicare levy.
-whether in full time employment or seasonal work.

CONSEQUENCES FOR NON-PAYMENT.

Your trustee may.
-garnishee funds from your income or bank account or from a third person who holds money for you.
-extend your bankruptcy by five years and assess additional contributions for this period.
-obtain judgment for unpaid contributions and take enforcement action after your discharge.
-require you to open a supervised bank account into which all your income must be paid from which all withdrawals are authorised by the trustee.