Bankruptcy Problems? Did you know that your Bankruptcy term may be prolonged?
My objective right now is to try and alert you regarding possible troubles you might have with Bankruptcy so that you can avoid making mistakes!
When it involves Bankruptcy, there is a great deal of complication and misinformation because of how difficult it might be, and how emotionally charged persons are whenever they are undergoing it. Here at Bankruptcy Experts Wollongong we certainly intend to make sure people realize that if you make mistakes it could be stretched from 3 years to 5 (or even 8) years!
Indeed, this indicates that you will remain even longer in the ‘Bankruptcy limbo’ so avoid triggering any of the following facets– because if you do, then Bankruptcy becomes much more challenging.
The general factor 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 complicated, so just ensure you act honestly. Before entering into bankruptcy you must ensure you declare everything– simply because if it is discovered that you made a special payment, or entered into an undervalued transaction this will be a minor breach and will lengthen the term. On top of that, you have to make sure that you stay away from particular things while you are bankrupt, so please:
- Do not work as a Director of a company.
- Do not leave Australia without the consent 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 reveal a beneficial interest or asset
- Do not fail to go to a meeting arranged by your trustee without having justifiable explanation.
MAJOR BREACHES – Extend to 8 Years.
So when it relates to Bankruptcy, there are some facets that if you are in violation can effectively end up increasing the term to 8 years. This is undoubtedly something you will want to avoid. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee concerning any issues arising from residential 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 asked for 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 insolvency
And again, if prior to bankruptcy you did any of the following:
- Deliberately provided any false or misleading details to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the objective to overpower lenders
Bankruptcy and these types of term increases in Australia are regularly challenging and complicated, and unfortunately, what I have just detailed is just 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 Wollongong on 1300 795 575, or visit our website: www.bankruptcyexpertswollongong.com.au