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Bankruptcy Troubles? Did you know that your Bankruptcy term could be prolonged?

Bankruptcy Troubles? Did you know that your Bankruptcy term could be prolonged?

My mission today is to try and alert you about likely problems you could have with Bankruptcy so that you can avoid making errors!

When it includes Bankruptcy, there is lots of confusion and false information because of how complex it can be, and how emotionally charged a lot of people are whenever they are experiencing it. Here at Bankruptcy Experts Cassowary Coast we definitely intend to make certain individuals know that if you make mistakes it may be extended from 3 years to 5 (or even 8) years!

Indeed, this indicates that you will remain even further in the ‘Bankruptcy limbo’ so stay clear of triggering any one of the following aspects– because if you do, then Bankruptcy ends up being a lot more tricky.

The general reason that a Bankruptcy period will be extended is if you behave dishonestly or unethically.


MINOR BREACHES – Extend to 5 Years

As I stated, Bankruptcy is complex, so just ensure you behave honestly. Before entering into insolvency you need to ensure you state every little thing– simply 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 increase the term. In addition to that, you need to ensure that you avoid particular things while you are bankrupt, so please:

  •  Do not act as a Director of a company.
  •  Do not depart Australia without the permission of your Trustee
  •  Do not incur 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 an interview organized 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 find yourself in violation can effectively find yourself prolonging the term to 8 years. This is certainly something you will want to avoid. So please, while Bankrupt:

  •  Do not fail to give written explanation to the trustee concerning any issues occurring from residential property or income.
  •  Do not incur more credit than the prescribed amount
  •  Do not depart 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 reveal a beneficial interest in an asset.
  •  Do not fail to disclose the purpose of any money invested or property sold 5 years before personal bankruptcy

And again, if prior to personal bankruptcy you did any of the following:

  •  Deliberately offered any false or misleading details to your trustee
  •  Entered into a transaction, or extreme payments into your superannuation fund with the intent to defeat lenders

Bankruptcy and these types of term increases in Australia are regularly difficult to understand 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 speak with us here at Bankruptcy Experts Cassowary Coast on 1300 795 575, or go to our website: