My mission right now is to try and inform you about possible issues you might have with Bankruptcy so that you can stay away from making mistakes!
When it involves Bankruptcy, there is a great deal of complication and misinformation as a result of how tricky it might be, and how emotionally charged people are whenever they are going through it. Here at Bankruptcy Experts Dubbo we absolutely want to ensure people know that if you make errors it can be extended from 3 years to 5 (or even 8) years!
Yes, this indicates that you will remain even further in the ‘Bankruptcy limbo’ so avoid triggering any one of the following aspects– because if you do, then Bankruptcy becomes far more complicated.
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 act honestly. Before entering into bankruptcy you must make sure you state every little thing– because if it is found that you made a special payment, or entered into an underestimated transaction this will be a minor breach and will stretch the term. In addition to that, you have to ensure that you stay clear of certain things while you are bankrupt, so please:
- Do not serve as a Director of a company.
- Do not leave Australia without the consent of your Trustee
- Do not acquire credit more that the prescribed amount
- Do not fail to show up at a meeting of your creditors
- Do not fail to disclose a beneficial interest or property
- Do not fail to go to an interview organized by your trustee without reasonable explanation.
MAJOR BREACHES – Extend to 8 Years.
So when it relates to Bankruptcy, there are some areas that if you are in violation can effectively find yourself increasing the term to 8 years. This is undoubtedly something you will wish to prevent. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee concerning any issues developing from property or income.
- 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 requested you to sign it.
- Do not fail to disclose a beneficial interest in an asset.
- Do not fail to reveal the reason of any money spent or property sold 5 years before bankruptcy
And furthermore, if prior to bankruptcy you did any one of the following:
- Deliberately provided any false or misleading information to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the intention to overpower creditors
Bankruptcy and these forms of term extensions in Australia are regularly confusing and intricate, 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 consult with us here at Bankruptcy Experts Dubbo on 1300 795 575, or go to our website: www.bankruptcyexpertsdubbo.com.au