My mission today is to try and alert you regarding potential problems you might have with Bankruptcy so that you can avoid making errors!
When it includes Bankruptcy, there is a great deal of confusion and false information because of how tricky it might be, and how emotionally charged persons are whenever they are undergoing it. Here at Bankruptcy Experts Newcastle we definitely wish to make certain individuals understand that if you make errors it can be extended from 3 years to 5 (or even 8) years!
Yes, this indicates that you will remain even longer in the ‘Bankruptcy limbo’ so stay clear of triggering any one of the following facets– because if you do, then Bankruptcy ends up being far more complicated.
The general reason that a Bankruptcy duration will be extended is if you act dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I said, Bankruptcy is complicated, so just make sure you act honestly. Before entering into bankruptcy you must ensure you state every little thing– because if it is found that you made a special payment, or entered into an undervalued financial transaction this will be a minor breach and will increase the term. In addition to that, you should make sure that you stay clear of particular aspects while you are bankrupt, so please:
- Do not serve as a Director of a company.
- Do not depart 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 disclose a beneficial interest or property
- Do not fail to go to a meeting organized by your trustee without reasonable explanation.
MAJOR BREACHES – Extend to 8 Years.
So when it relates to Bankruptcy, there are some facets that if you find yourself in violation can effectively end up increasing the term to 8 years. This is undoubtedly something you will wish to prevent. So please, while Insolvent:
- Do not fail to give written explanation to the trustee concerning any issues developing from property or income.
- 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 reveal a beneficial interest in an asset.
- Do not fail to reveal 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 provided any false or misleading information to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the intention to defeat creditors
Bankruptcy and these types of duration increases in Australia are usually difficult and intricate, and sadly, what I have just listed 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 Newcastle on 1300 795 575, or go to our website: www.bankruptcyexpertsnewcastle.com.au