My objective today is to try and inform you about potential troubles you may have with Bankruptcy to make sure that you can stay clear of making mistakes!
When it involves Bankruptcy, there is lots of complication and misinformation due to how tricky it can be, and how emotionally charged individuals are when they are undergoing it. Here at Bankruptcy Experts Wangaratta we definitely intend to ensure people realize that if you make mistakes it can be extended from 3 years to 5 (or even 8) years!
Indeed, this means that you will remain even longer in the ‘Bankruptcy limbo’ so avoid setting off any of the following aspects– because if you do, then Bankruptcy ends up being far more difficult.
The basic reason that a Bankruptcy term will be extended 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 insolvency you need to ensure you state everything– simply because if it is identified 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 need to ensure that you avoid 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 amount
- Do not fail to show up at a meeting of your lenders
- Do not fail to disclose 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 aspects that if you find yourself in violation can effectively end up extending the term to 8 years. This is undoubtedly something you will wish to steer clear of. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee concerning any issues occurring from property or earnings.
- Do not acquire more credit than the prescribed amount
- Do not leave Australia and fail to come back when requested 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 reveal the purpose of any money invested or property sold 5 years prior to personal bankruptcy
And again, if before personal bankruptcy you did any of the following:
- Deliberately provided any false or misleading details to your trustee
- Participated in a transaction, or excessive payments into your superannuation fund with the objective to overpower lenders
Bankruptcy and these sorts of duration increases in Australia are typically perplexing and intricate, and unfortunately, what I have just listed is only the tip of the Iceberg. If you need to know more about Bankruptcy feel free to consult with us here at Bankruptcy Experts Wangaratta on 1300 795 575, or visit our website: www.bankruptcyexpertswangaratta.com.au