When it comes to Filing For Bankruptcy, generally there is plenty of complication because it is an area that you truly do need to get some good advice in because otherwise you may end up in an even worse situation. That I why here at Bankruptcy Experts Newcastle we really want to ensure people understand that there are particular things that can effectively make your Bankruptcy term be extended from 3 years to 5 (or even 8) years!
Yes, this shows that you will continue to be even longer in the ‘Bankruptcy limbo’ so heed our recommendations and avoid triggering any of the following areas– because if you do, then the entire area of Filing For Bankruptcy becomes even more difficult and the Trustee can actually step in and get your term increased rather than letting it automatically discharge.
So precisely how can the period be extended to 5 years?
There are a lot of ways in Newcastle, and these are considered the ‘minor breaches’ because they only extend the term to the 5 year mark. So please, while Bankrupt:
- Do not still act as a Director of a company.
- Do not depart Australia without the permission of your Trustee
- Do not incur credit more that the recommended amount
- Do not fail to go to a meeting of your creditors
- Do not fail to disclose a beneficial interest or asset
- Do not fail to attend an interview organised by your trustee without reasonable explanation.
And also, if certain extra aspects are discovered, this can also increase the term to 5 years, so if it is found out that before Bankruptcy, you:
- Made a preferential payment
- Entered into an undervalued transaction.
So how can the term be extended to 8 years?
So when it relates to Filing For Bankruptcy, there are some areas that if you breach can actually end up extending the term to 8 years. So please, while Bankrupt:
- Do not fail to provide written explanation to the trustee regarding any issues developing from property or income.
- Do not incur more credit than the prescribed amount
- Do not leave Australia and fail to come back when asked by the trustee.
- Do not refuse to sign a document after the trustee has requested you to sign it.
- Do not fail to disclose a beneficial interest in an asset.
- Do not fail to clarify the purpose of any money spent or property sold 5 years prior to bankruptcy
And again, if prior to bankruptcy you did any of the following:
- Intentionally provided any false or misleading information to your trustee
- Entered into a transaction, or excessive payments into your superannuation fund with the intention to defeat creditors
Filing For Bankruptcy and these term extensions in Australia are confusing and complicated, these lists of issues that you may deal with are just the tip of the iceberg as far as your possibilities in Newcastle are concerned. If you need to know more about Filing For Bankruptcy feel free to consult with us here at Bankruptcy Experts Newcastle on 1300 795 575, or visit our website: www.bankruptcyexpertsNewcastle.com.au