Case study: Simon
Earning income during bankruptcy
Simon is a 45-year-old single father of two young children. He lives in Melbourne, Victoria.
Two years ago, Simon lost his teaching job and found himself unable to pay his debts. He went bankrupt six months later.
Recently, Simon was offered a position at a school. He accepted the job, and now earns $91,000 (after tax) a year.
Simon let his trustee know about his new job, as he knew that he needed to report all changes in employment and income.
The trustee told Simon that because he is now earning above the income threshold*, he needs to make income contributions.
From his fortnightly after-tax pay of about $3,590, Simon’s compulsory income contributions are around $168 per fortnight (based on the March 2023 income thresholds).
*The income thresholds change twice a year, and are different depending on how many dependants you have. You can find the latest thresholds at Indexed Amounts.
*These case studies do not constitute legal or financial advice. You should consider whether the options referred to in the case studies are appropriate for you, and seek advice if necessary, before taking any action.