Working income does not simply stop because of bankruptcy. Understand reporting and contribution requirements before making commitments based on your take-home pay.
Corporate Recovery Partners
01 / 06
A larger project receipt needs an updated assessment
A self-employed designer enters bankruptcy and later receives a larger project fee. The designer assumes the whole receipt is available for living costs because it was earned after bankruptcy. The trustee asks for an income update. Before spending it, the designer needs to understand how earnings, business costs and contribution requirements are assessed.
Provide the requested information about employment, business receipts and other income. Keep records of invoices, expenses and payments, and distinguish gross revenue from money available personally.
AFSA says income changes must be reported and compulsory contributions may apply. Ask the trustee what information is needed for your circumstances rather than calculating liability from a bank deposit alone.
Request an explanation of the assessment period, relevant income and treatment of dependants or other applicable factors. Check the current figures with the trustee; thresholds and circumstances can change.
Do not assume that every dollar earned is taken, or that no contribution is due because income varies. The correct budget starts with the actual assessment and reporting requirements.
Where work is irregular, maintain a forecast showing expected project receipts and personal living costs. Set aside money for obligations identified by the trustee rather than spending a large receipt as though it represents a permanent increase.
If income falls or the assessment appears inaccurate, contact the trustee promptly with supporting evidence. Do not simply stop required payments because your own estimate differs.
Check any occupation, licence or business restrictions that may apply to your work. The income contribution question is not the same as permission to manage a company or hold a regulated role.
Retain assessments, payment records and correspondence. A clear record helps resolve later queries and prevents an outdated assumption from shaping the next project or household commitment.
