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Filing For Bankruptcy Problems!– What exactly will extend your Bankruptcy Term?

When it concerns Filing For Bankruptcy, there certainly is a lot of confusion because it is really an area that you really do need to have some sound advice in because otherwise you may find yourself in an even more severe circumstance. That I why here at Bankruptcy Experts Canberra we actually want to ensure people realize that there are particular things that can really make your Bankruptcy term be extended from 3 years to 5 (or even 8) years!

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Yes, this means that you will be even longer in the ‘Bankruptcy limbo’ so heed our recommendations and avoid triggering any of the following areas– because if you do, then the entire area of Filing For Bankruptcy becomes far more complicated and the Trustee can actually intervene and get your term prolonged rather than letting it automatically discharge.

So exactly how can the period be extended to 5 years?

There are a lot of ways in Canberra, and these are considered the ‘minor breaches’ because they only extend the term to the 5 year mark. So please, while Bankrupt:

  •  Do not still act as a Director of a company.
  •  Do not depart Australia without the permission of your Trustee
  •  Do not incur credit more that the prescribed amount
  •  Do not fail to show up at a meeting of your creditors
  •  Do not fail to disclose a beneficial interest or asset
  •  Do not fail to show up at an interview arranged by your trustee without reasonable explanation.

And also, if certain additional aspects are discovered, this can also raise the term to 5 years, so if it is found out that before Bankruptcy, you:

  •  Made a preferential payment
  •  Entered into an undervalued transaction.

So how can the term be extended to 8 years?

So when it concerns Filing For Bankruptcy, there are some areas that if you breach can really end up extending the term to 8 years. So please, while Bankrupt:

  •  Do not fail to supply written explanation to the trustee regarding any issues developing from property or income.
  •  Do not incur more credit than the prescribed quantity
  •  Do not leave Australia and fail to come back when asked by the trustee.
  •  Do not refuse to sign a file after the trustee has requested you to sign it.
  •  Do not fail to reveal a beneficial interest in an asset.
  •  Do not fail to explain the purpose of any money spent or property sold 5 years prior to bankruptcy

And again, if prior to bankruptcy you did any of the following:

  •  Deliberately provided any false or misleading information to your trustee
  •  Entered into a transaction, or extreme payments into your superannuation fund with the intention to defeat creditors

Filing For Bankruptcy and these types of term extensions in Australia are confusing and challenging, these lists of complications that you may face are just the tip of the iceberg as far as your choices in Canberra are concerned. If you need to know more about Filing For Bankruptcy feel free to contact us here at Bankruptcy Experts Canberra on 1300 795 575, or visit our website: www.bankruptcyexpertsCanberra.com.au