My goal right now is to try and warn you about likely troubles you may have with Bankruptcy to ensure that you can stay clear of making mistakes!
When it involves Bankruptcy, there is lots of confusion and false information because of how challenging it may be, and how emotionally charged persons are whenever they are undergoing it. Here at Bankruptcy Experts Townsville we definitely intend to make certain people realize that if you make errors it could be extended from 3 years to 5 (or even 8) years!
Indeed, this indicates that you will stay even further in the ‘Bankruptcy limbo’ so avoid triggering any one of the following facets– because if you do, then Bankruptcy becomes much more difficult.
The standard reason that a Bankruptcy period will be stretched is if you act dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I mentioned, Bankruptcy is complicated, so just ensure you act honestly. Before entering into insolvency you must ensure you state every little thing– because if it is identified that you made a special payment, or entered into an undervalued transaction this will be a minor breach and will lengthen the term. In addition to that, you need to make certain that you avoid particular aspects while you are bankrupt, so please:
- Do not act as a Director of a company.
- Do not leave Australia without the permission of your Trustee
- Do not incur credit more that the prescribed amount
- Do not fail to show up at a meeting of your creditors
- Do not fail to reveal a beneficial interest or property
- Do not fail to go to an interview organized by your trustee without reasonable 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 prolonging the term to 8 years. This is obviously something you will want to avoid. So please, while Insolvent:
- Do not fail to give written explanation to the trustee concerning any issues occurring from 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 requested you to sign it.
- Do not fail to disclose a beneficial interest in an asset.
- Do not fail to disclose the purpose of any money invested or property sold 5 years prior to insolvency
And furthermore, if prior to bankruptcy you did any one of the following:
- Intentionally provided any false or misleading details to your trustee
- Entered into a transaction, or excessive payments into your superannuation fund with the intent to defeat creditors
Bankruptcy and these forms of duration extensions in Australia are usually perplexing and tricky, and sadly, what I have just detailed is only the tip of the Iceberg. If you need to understand more about Bankruptcy don’t hesitate to talk to us here at Bankruptcy Experts Townsville on 1300 795 575, or visit our website: www.bankruptcyexpertstownsville.com.au