Insolvency – What can extend your Bankruptcy Term?

When it relates to Insolvency Advice, there certainly is plenty of complication because it is an area that you truly do need some sound advice in because typically you may find yourself in an even more severe situation. That I why here at Fresh Start Solutions Australia we certainly want to make certain people are aware that there are specific things that can effectively make your Bankruptcy term be stretched from 3 years to 5 (or even 8) years!

Yes, this means that you will stay even longer in the ‘Bankruptcy limbo’ so heed our suggestions and avoid prompting any of the following areas – because if you do, then the entire area of Insolvency Advice becomes much more complex and the Trustee can actually intervene and get your term prolonged instead of letting it automatically discharge.

So how can the duration be extended to 5 years?

There are a variety of ways in Australia, and these types of are considered the ‘minor breaches’ because they only extend the term to the 5 year mark. So please, while Bankrupt:

• Do not remain to act as a Director of a company.
• Do not exit Australia without the permission of your Trustee
• Do not incur credit more that the recommended amount
• Do not fail to attend a meeting of your creditors
• Do not fail to reveal a beneficial interest or asset
• Do not fail to show up at an interview organised by your trustee without having justifiable explanation.
• And also, if certain additional aspects are discovered, this can also increase the term to 5 years, so if it is found out that before Bankruptcy, you:
• Made a preferential payment
• Entered into an undervalued transaction.

So how can the term be extended to 8 years?

So when it comes down to Insolvency Advice, there are some areas that if you are in violation can really end up extending the term to 8 years. So please, while Bankrupt:

• Do not fail to provide written explanation to the trustee regarding any issues developing from property or income.
• Do not incur more credit than the prescribed amount
• Do not leave 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 clarify the purpose of any money spent or property sold 5 years prior to bankruptcy
• And again, if prior to bankruptcy you did any 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 defeat creditors

Insolvency Advice and these term extensions in Australia are complex and complicated, these lists of issues that you may face are just the tip of the iceberg as far as your possibilities in Australia are concerned. If you have to know more about Insolvency Advice feel free to get in touch with us here at Fresh Start Solutions Australia on 1300 818 575, we have offices in, Brisbane, Canberra, Sunshine Coast, Sydney, Melbourne, Gold Coast, Adelaide, Perth, Darwin and Hobart. or visit our website:  www.freshstartsolutions.com.au/bankruptcy-Australia.com.au