My objective today is to try and warn you regarding likely problems you may have with Bankruptcy to ensure that you can stay away from making mistakes!
When it includes Bankruptcy, there is lots of confusion and misinformation due to how complicated it can be, and how emotionally charged persons are when they are undergoing it. Here at Bankruptcy Experts Maitland we definitely intend to ensure individuals realize that if you make mistakes 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 stay clear of setting off any of the following aspects– because if you do, then Bankruptcy ends up being much more challenging.
The basic reason that a Bankruptcy period will be stretched is if you act dishonestly or unethically.
MINOR BREACHES– Extend to 5 Years
As I said, Bankruptcy is complicated, so just ensure you act honestly. Before entering into insolvency you must ensure you declare every little thing– because if it is found that you made a preferential payment, or participated in an undervalued transaction this will be a minor breach and will extend the term. On top of that, you need to make sure that you stay away from particular aspects while you are bankrupt, so please:
- Do not function as a Director of a company.
- Do not depart Australia without the approval of your Trustee
- Do not acquire credit more that the prescribed quantity
- 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 an interview organized by your trustee without justifiable 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 increasing the term to 8 years. This is certainly something you will want to prevent. So please, while Insolvent:
- Do not fail to give written explanation to the trustee concerning any issues occurring from residential property or earnings.
- Do not incur more credit than the prescribed amount
- Do not leave Australia and fail to return 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 disclose a beneficial interest in an asset.
- Do not fail to reveal the purpose of any money spent or property sold 5 years prior to personal bankruptcy
And furthermore, if before bankruptcy you did any one of the following:
- Intentionally offered any false or misleading details to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the objective to overpower creditors
Bankruptcy and these types of duration extensions in Australia are usually perplexing and complicated, and unfortunately, what I have just listed is only the tip of the Iceberg. If you need to understand more about Bankruptcy do not hesitate to consult with us here at Bankruptcy Experts Maitland on 1300 795 575, or visit our website: www.bankruptcyexpertsmaitland.com.au