Bankruptcy Problems? Did you know that your Bankruptcy duration may be extended?

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Bankruptcy Problems? Did you know that your Bankruptcy duration may be extended?

My mission right now is to try and inform you about likely troubles you may have with Bankruptcy to ensure that you can avoid making mistakes!

When it involves Bankruptcy, there is lots of difficulty and false information because of how complicated it might be, and how emotionally charged individuals are when they are going through it. Here at Bankruptcy Experts Sunshine Coast we certainly intend to make sure people recognize that if you make mistakes it could be stretched from 3 years to 5 (or even 8) years!

Indeed, this means that you will stay even further in the ‘Bankruptcy limbo’ so stay clear of setting off any of the following facets– because if you do, then Bankruptcy ends up being a lot more challenging.

The general factor that a Bankruptcy duration will be prolonged is if you behave dishonestly or unethically.

MINOR BREACHES– Extend to 5 Years

As I said, Bankruptcy is complex, so just ensure you act honestly. Before entering into insolvency you have to ensure you state every little thing– simply because if it is discovered that you made a preferential payment, or entered into an undervalued financial transaction this will be a minor breach and will stretch the term. On top of that, you should ensure that you stay clear of particular things while you are bankrupt, so please:

– Do not serve as a Director of a company.

– Do not leave Australia without the consent of your Trustee

– Do not incur credit more that the prescribed amount

– Do not fail to show up at a meeting of your lenders

– Do not fail to disclose a beneficial interest or asset

– 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 aspects that if you find yourself in violation can effectively end up extending the term to 8 years. This is undoubtedly something you will want to avoid. So please, while Insolvent:

– Do not fail to give written explanation to the trustee regarding any issues developing from residential property or earnings.

– Do not acquire more credit than the prescribed amount

– Do not leave 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 reason of any money spent or property sold 5 years before bankruptcy

And again, if before bankruptcy you did any one of the following:

– Intentionally offered any false or misleading information to your trustee

– Entered into a transaction, or extreme payments into your superannuation fund with the intention to overpower creditors

Bankruptcy and these forms of duration increases in Australia are usually confusing and intricate, and unfortunately, what I have just listed is only the tip of the Iceberg. If you need to understand more about Bankruptcy don’t hesitate to speak with us here at Bankruptcy Experts Sunshine Coast on 1300 795 575, or go to our website:

By | 2018-07-09T04:42:12+00:00 December 20th, 2016|Bankruptcy, Liquidation|0 Comments

About the Author:

Director of Fresh Start Solutions and specialises in helping people free themselves from overwhelming debt. Whether it's Bankruptcy, Liquidation, Insolvency Advice or simply General Debt Advice.