Bankruptcy Troubles? Did you know that your Bankruptcy period could be extended?
My mission right now is to try and warn you regarding potential troubles you might have with Bankruptcy to ensure that you can stay away from making errors!
When it involves Bankruptcy, there is lots of difficulty and misinformation as a result of how difficult it may be, and how emotionally charged people are when they are going through it. Here at Bankruptcy Experts Joondalup we absolutely intend to make sure people know that if you make mistakes it can be extended from 3 years to 5 (or even 8) years!
Yes, this suggests that you will continue being even longer in the ‘Bankruptcy limbo’ so avoid setting off any one of the following facets– because if you do, then Bankruptcy ends up being much more challenging.
The standard factor that a Bankruptcy duration will be stretched is if you behave dishonestly or unethically.
MINOR BREACHES– Extend to 5 Years
As I stated, Bankruptcy is complex, so just make sure you act honestly. Before entering into insolvency you have to ensure that you declare everything– because if it is discovered that you made a preferential payment, or entered into an underestimated transaction this will be a minor breach and will extend the term. In addition to that, you have to ensure that you stay away from particular things while you are insolvent, so please:
- Do not function as a Director of a company.
- Do not leave Australia without the consent of your Trustee
- Do not incur credit more that the prescribed quantity
- Do not fail to show up at a meeting of your lenders
- Do not fail to reveal a beneficial interest or asset
- Do not fail to go to an interview arranged by your trustee without having justifiable explanation.
MAJOR BREACHES– Extend to 8 Years.
So when it relates to Bankruptcy, there are some facets that if you are in violation can effectively end up 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 concerning any issues occurring from property or income.
- 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 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 spent or property sold 5 years before insolvency
And furthermore, if prior to insolvency you did any of the following:
- Intentionally offered any false or misleading information to your trustee
- Entered into a transaction, or excessive payments into your superannuation fund with the objective to defeat creditors
Bankruptcy and these forms of duration increases in Australia are usually difficult and complicated, and sadly, what I have just detailed is only the tip of the Iceberg. If you need to understand more about Bankruptcy feel free to talk to us here at Bankruptcy Experts Joondalup on 1300 795 575, or visit our website: www.bankruptcyexpertsjoondalup.com.au