My goal today is to try and warn you regarding potential complications you may have with Bankruptcy to ensure that you can stay clear of making errors!
When it includes Bankruptcy, there is a great deal of difficulty and misinformation due to how challenging it may be, and how emotionally charged individuals are whenever they are experiencing it. Here at Bankruptcy Advice we definitely wish to make sure people understand that if you make mistakes it could be extended from 3 years to 5 (or even 8) years!
Yes, this means that you will remain even longer in the ‘Bankruptcy limbo’ so avoid setting off any one of the following aspects– because if you do, then Bankruptcy becomes much more complicated.
The standard reason that a Bankruptcy period will be prolonged is if you behave dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I mentioned, Bankruptcy is complicated, so just make sure you behave truthfully. Before entering into bankruptcy you have to make sure you state every little thing– 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 lengthen the term. On top of that, you need to make sure that you stay clear of particular aspects while you are insolvent, so please:
- Do not act as a Director of a company.
- Do not depart Australia without the consent of your Trustee
- Do not incur credit more that the prescribed amount
- Do not fail to show up at a meeting of your lenders
- Do not fail to disclose a beneficial interest or asset
- Do not fail to go to a meeting organized by your trustee without having reasonable 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 find yourself extending the term to 8 years. This is obviously something you will wish to avoid. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee concerning any issues developing from property or earnings.
- Do not incur more credit than the prescribed amount
- Do not depart Australia and fail to return when asked by the trustee.
- Do not refuse to sign a file after the trustee has asked for you to sign it.
- Do not fail to reveal a beneficial interest in an asset.
- Do not fail to disclose the reason of any money spent or property sold 5 years prior to personal bankruptcy
And furthermore, if prior to bankruptcy you did any one of the following:
- Deliberately offered any false or misleading details to your trustee
- Participated in a transaction, or extreme payments into your superannuation fund with the intent to defeat creditors
Bankruptcy and these types of term extensions in Australia are always confusing and complicated, and sadly, what I have just detailed is only the tip of the Iceberg. If you need to know more about Bankruptcy don’t hesitate to talk to us here at Bankruptcy Advice on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au