My mission today is to try and inform you regarding likely complications you could have with Bankruptcy to ensure that you can stay clear of making mistakes!
When it involves Bankruptcy, there is a great deal of confusion and misinformation because of how difficult it could be, and how emotionally charged a lot of people are whenever they are experiencing it. Here at Bankruptcy Experts Tennant Creek we certainly wish to make sure people realize that if you make mistakes it may be extended from 3 years to 5 (or even 8) years!
Indeed, this means 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 ends up being far more complicated.
The general factor that a Bankruptcy period will be extended is if you behave dishonestly or unethically.
MINOR BREACHES– Extend to 5 Years
As I said, Bankruptcy is complicated, so just ensure you act genuinely. Before entering into bankruptcy you have to make sure you state every little thing– because if it is identified that you made a preferential payment, or entered into an undervalued financial transaction this will be a minor breach and will stretch the term. In addition to that, you should make certain that you stay away from certain things while you are insolvent, so please:
- Do not act as a Director of a company.
- Do not leave Australia without the approval of your Trustee
- Do not acquire credit more that the prescribed amount
- 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 justifiable explanation.
MAJOR BREACHES– Extend to 8 Years
So when it relates to Bankruptcy, there are some aspects that if you are in violation can effectively end up increasing the term to 8 years. This is obviously something you will wish to prevent. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee regarding any issues arising from property or earnings.
- Do not acquire more credit than the prescribed amount
- Do not depart Australia and fail to come back when requested by the trustee.
- Do not refuse to sign a file after the trustee has requested 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 prior to bankruptcy
And again, if before bankruptcy you did any one of the following:
- Deliberately provided any false or misleading details to your trustee
- Participated in a transaction, or excessive payments into your superannuation fund with the intent to overpower lenders
Bankruptcy and these types of duration extensions in Australia are usually challenging and intricate, and sadly, what I have just listed is only the tip of the Iceberg. If you need to understand more about Bankruptcy don’t hesitate to seek advice from us here at Bankruptcy Experts Tennant Creek on 1300 795 575, or visit our website: Bankruptcy Experts Tennant Creek