My goal right now is to try and alert you about likely troubles you might have with Bankruptcy so that you can stay away from making mistakes!
When it includes Bankruptcy, there is lots of confusion and misinformation as a result of how complex it may be, and how emotionally charged people are whenever they are undergoing it. Here at Bankruptcy Experts Albury we definitely want to ensure individuals understand that if you make errors it may be stretched from 3 years to 5 (or even 8) years!
Yes, this indicates that you will stay even longer in the ‘Bankruptcy limbo’ so stay clear of triggering any of the following areas– because if you do, then Bankruptcy ends up being much more tough.
The basic factor that a Bankruptcy term will be stretched is if you behave dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I said, Bankruptcy is complex, so just ensure you behave genuinely. Before entering into insolvency you need to ensure you state everything– because if it is found that you made a special payment, or participated in an underestimated transaction this will be a minor breach and will stretch the term. On top of that, you need to make sure that you avoid certain things while you are insolvent, 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 amount
- Do not fail to show up at a meeting of your creditors
- Do not fail to disclose a beneficial interest or asset
- Do not fail to go to a meeting arranged by your trustee without reasonable explanation.
MAJOR BREACHES – Extend to 8 Years.
So when it relates to Bankruptcy, there are some areas that if you find yourself in violation can effectively find yourself increasing 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 concerning any issues developing from residential property or earnings.
- 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 disclose a beneficial interest in an asset.
- Do not fail to reveal the purpose of any money invested or property sold 5 years before bankruptcy
And again, if before personal bankruptcy you did any of the following:
- Intentionally provided any false or misleading details to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the intention to defeat lenders
Bankruptcy and these types of term extensions in Australia are usually complex and tricky, and unfortunately, what I have just detailed is only the tip of the Iceberg. If you need to know more about Bankruptcy don’t hesitate to talk to us here at Bankruptcy Experts Albury on 1300 795 575, or visit our website: www.bankruptcyexpertsalbury.com.au