Bankruptcy Problems? Did you know that your Bankruptcy period may be prolonged?
My mission right now is to try and inform you about possible problems you could have with Bankruptcy to make sure that you can stay away from making errors!
When it includes Bankruptcy, there is a great deal of difficulty and false information due to how tricky it may be, and how emotionally charged persons are whenever they are going through it. Here at Bankruptcy Experts Canberra we certainly want to ensure individuals understand that if you make mistakes it may be extended from 3 years to 5 (or even 8) years!
Yes, this indicates that you will stay even longer in the ‘Bankruptcy limbo’ so avoid setting off any one of the following aspects– because if you do, then Bankruptcy ends up being a lot more tough.
The basic factor that a Bankruptcy duration will be extended is if you behave dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I stated, Bankruptcy is complex, so just make sure you behave truthfully. Before entering into bankruptcy you need to ensure that you state every little thing– simply because if it is discovered that you made a preferential payment, or participated in an underestimated transaction this will be a minor breach and will extend the term. On top of that, you should make sure that you stay away from particular aspects while you are bankrupt, so please:
- Do not serve as a Director of a company.
- Do not leave Australia without the approval of your Trustee
- Do not incur credit more that the prescribed quantity
- Do not fail to show up at a meeting of your creditors
- Do not fail to reveal a beneficial interest or asset
- Do not fail to go to a meeting organized by your trustee without justifiable explanation.
MAJOR BREACHES – Extend to 8 Years.
So when it relates to Bankruptcy, there are some aspects that if you are in violation can effectively end up extending the term to 8 years. This is obviously something you will wish to prevent. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee regarding any issues occurring from residential property or earnings.
- Do not acquire more credit than the prescribed amount
- Do not depart Australia and fail to return when requested 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 reveal the reason of any money invested or property sold 5 years before personal bankruptcy
And furthermore, if before insolvency you did any one of the following:
- Intentionally provided any false or misleading details to your trustee
- Entered into a transaction, or excessive payments into your superannuation fund with the intention to defeat lenders
Bankruptcy and these types of term extensions in Australia are regularly challenging and intricate, and sadly, what I have just listed is only the tip of the Iceberg. If you need to know more about Bankruptcy do not hesitate to consult with us here at Bankruptcy Experts Canberra on 1300 795 575, or go to our website: www.bankruptcyexpertscanberra.com.au