When it concerns Insolvency Advice, generally there is lots of complication because it is definitely an area that you really do need to get some firm advice in because otherwise you may find yourself in an even more severe situation. That I why here at Bankruptcy Advice Australia we really want to make sure people realize that there are certain things that can actually make your Bankruptcy term be prolonged from 3 years to 5 (or even 8) years!
Yes, this shows that you will remain even longer in the ‘Bankruptcy limbo’ so heed our advice and avoid prompting any of the following areas – because if you do, then the entire area of Insolvency Advice becomes far more complicated and the Trustee can actually step in and get your term prolonged instead of letting it automatically discharge.
So just how can the duration be extended to 5 years?
There are a lot of ways in Australia, and these are considered the ‘minor breaches’ because they only extend the term to the 5 year mark. So please, while Bankrupt:
- Do not remain to act as a Director of a company.
- Do not exit Australia without the permission of your Trustee
- Do not acquire credit more that the recommended amount
- Do not fail to go to a meeting of your creditors
- Do not fail to reveal a beneficial interest or asset
- Do not fail to attend an interview organised by your trustee without having reasonable explanation.
- And also, if certain extra 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 comes down to Insolvency Advice, there are some areas that if you breach can actually end up extending the term to 8 years. So please, while Bankrupt:
- Do not fail to present written explanation to the trustee regarding any issues arising from property or income.
- Do not incur more credit than the prescribed level
- Do not depart Australia and fail to return 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 disclose a beneficial interest in an asset.
- Do not fail to reveal 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:
- Intentionally 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
Insolvency Advice and these kinds of term extensions in Australia are complex and complicated, these lists of problems that you may encounter are just the tip of the iceberg as far as your options in Australia are concerned. If you need to know more about Insolvency Advice feel free to contact us here at Bankruptcy Advice Australia on 1300 879 867, we have offices in, Brisbane, Canberra, Sunshine Coast, Sydney, Melbourne, Gold Coast, Adelaide, Perth, Darwin and Hobart. or visit our website: www.bankruptcy-advice.com.au/Australia.com.au