Earning income during bankruptcy
Simon is a 45-year-old single parent of 2 young children. They live in Melbourne, Victoria.
Two years ago, Simon lost their teaching job and found themself unable to pay their debts. Simon went bankrupt 6 months later.
Recently, Simon was offered a position at a school. Simon accepted the job, and now earns $100,000 (after tax) a year.
Simon let the trustee know about the new job, as they knew that they needed to report all changes in employment and income.
The trustee told Simon that because they are now earning above the income threshold*, they need to make income contributions.
From their fortnightly after-tax pay of about $3,846.15, Simon's compulsory income contributions are around $161.73 per fortnight (based on the March 2025 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.
Note: 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.