My objective right now is to try and inform you about likely issues you might have with Bankruptcy to make sure that you can stay away from making mistakes!
When it includes Bankruptcy, there is a great deal of confusion and false information due to how challenging it might be, and how emotionally charged people are whenever they are going through it. Here at Bankruptcy Experts Whitsundays we certainly intend to ensure individuals know that if you make errors it could be extended from 3 years to 5 (or even 8) years!
Indeed, this suggests that you will stay even longer in the ‘Bankruptcy limbo’ so avoid setting off any of the following areas– because if you do, then Bankruptcy becomes a lot more complicated.
The general factor that a Bankruptcy period will be extended is if you behave dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I said, Bankruptcy is complex, so just make sure you act truthfully. Before entering into bankruptcy you need to ensure that you declare every little thing– simply because if it is identified that you made a special payment, or entered into an underestimated transaction this will be a minor breach and will increase the term. In addition to that, you have to make sure 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 reveal a beneficial interest or asset
- Do not fail to go to an interview arranged by your trustee without having reasonable explanation.
MAJOR BREACHES – Extend to 8 Years.
So when it relates to Bankruptcy, there are some areas that if you find yourself in violation can effectively find yourself extending the term to 8 years. This is certainly something you will want to avoid. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee regarding any issues developing from residential 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 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 personal bankruptcy
And again, if before personal bankruptcy you did any one of the following:
- Intentionally offered any false or misleading details to your trustee
- Participated in a transaction, or extreme payments into your superannuation fund with the intention to defeat creditors
Bankruptcy and these forms of duration extensions in Australia are always challenging and complicated, and sadly, what I have just noted is just the tip of the Iceberg. If you need to know more about Bankruptcy do not hesitate to talk to us here at Bankruptcy Experts Whitsundays on 1300 795 575, or go to our website: www.bankruptcyexpertswhitsundays.com.au