Bankruptcy Durations Can Be Prolonged
My objective today is to try and warn you about possible complications you may have with Bankruptcy to ensure that you can stay clear of making mistakes!
When it includes Bankruptcy, there is a great deal of confusion and false information as a result of how complicated it can be, and how emotionally charged individuals are when they are going through it. Here at Bankruptcy Experts Melbourne we absolutely wish to make sure people recognize that if you make mistakes it could be extended from 3 years to 5 (or even 8) years!
Indeed, this suggests that you will remain even longer in the ‘Bankruptcy limbo’ so avoid setting off any one of the following facets– because if you do, then Bankruptcy becomes much more challenging.
The standard factor that a Bankruptcy period will be stretched is if you behave dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I stated, Bankruptcy is complex, so just ensure you behave honestly. Before entering into bankruptcy you need to make sure you state every little thing– simply because if it is discovered that you made a preferential payment, or entered into an underestimated financial transaction this will be a minor breach and will extend the term. In addition to that, you need to ensure that you avoid certain things while you are insolvent, so please:
- Do not serve as a Director of a company.
- Do not leave Australia without the permission of your Trustee
- Do not acquire credit more that the prescribed amount
- Do not fail to show up at a meeting of your lenders
- Do not fail to reveal a beneficial interest or property
- 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 facets that if you find yourself in violation can effectively find yourself prolonging the term to 8 years. This is certainly something you will want to prevent. So please, while Insolvent:
- Do not fail to give written explanation to the trustee regarding any issues arising from property or earnings.
- Do not acquire 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 disclose a beneficial interest in an asset.
- Do not fail to disclose the purpose of any money spent or property sold 5 years before bankruptcy
And again, if before personal bankruptcy you did any of the following:
- Intentionally provided any false or misleading details to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the objective to defeat lenders
Bankruptcy and these forms of term increases in Australia are regularly difficult to understand and tricky, and sadly, what I have just noted is just the tip of the Iceberg. If you need to understand more about Bankruptcy don’t hesitate to seek advice from us here at Bankruptcy Experts Melbourne on 1300 795 575, or go to our website: www.bankruptcyexpertsmelbourne.com.au