March 7, 2017 0

Bankruptcy Troubles? Did you know that your Bankruptcy term may be prolonged?

Posted by:Charles Bosse onMarch 7, 2017

My objective today is to try and warn you regarding likely problems you could have with Bankruptcy to make sure that you can stay away from making errors!

When it involves Bankruptcy, there is lots of difficulty and false information as a result of how challenging it can be, and how emotionally charged people are when they are experiencing it. Here at Bankruptcy Experts we absolutely wish to make certain individuals recognize that if you make errors it may be stretched from 3 years to 5 (or even 8) years!

Indeed, this suggests that you will continue being even longer in the ‘Bankruptcy limbo’ so avoid setting off any of the following areas– because if you do, then Bankruptcy becomes much more complicated.

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 said, Bankruptcy is complex, so just make sure you act honestly. Before entering into bankruptcy you need to ensure that you declare everything– because if it is found that you made a preferential payment, or entered into an underestimated transaction this will be a minor breach and will prolong the term. On top of that, you have to ensure that you stay clear of particular aspects while you are insolvent, so please:

  •  Do not function as a Director of a company.
  •  Do not depart 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 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 find yourself prolonging the term to 8 years. This is obviously something you will wish to avoid. So please, while Bankrupt:

  •  Do not fail to give written explanation to the trustee regarding any issues occurring from property or earnings.
  •  Do not incur more credit than the prescribed amount
  •  Do not depart Australia and fail to come back 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 reveal a beneficial interest in an asset.
  •  Do not fail to reveal the purpose of any money spent or property sold 5 years before insolvency

And again, 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 extreme payments into your superannuation fund with the intention to overpower lenders

Bankruptcy and these kinds of duration increases in Australia are usually confusing and intricate, and unfortunately, what I have just detailed is only the tip of the Iceberg. If you need to know more about Bankruptcy do not hesitate to seek advice from us here at Bankruptcy Experts on 1300 818 575, or go to our website: www.freshstartsolutions.com.au

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