My objective today is to try and inform you about likely problems you may have with Bankruptcy to make sure that you can stay clear of making mistakes!
When it includes Bankruptcy, there is lots of confusion and false information because of how challenging it may be, and how emotionally charged individuals are when they are experiencing it. Here at Bankruptcy Experts Hervey Bay we definitely want to make sure people understand that if you make mistakes it can be stretched from 3 years to 5 (or even 8) years!
Yes, this means that you will continue being even further in the ‘Bankruptcy limbo’ so avoid triggering any one of the following areas– because if you do, then Bankruptcy ends up being a lot more complicated.
The basic reason that a Bankruptcy period will be prolonged is if you act dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I stated, Bankruptcy is complex, so just ensure you act honestly. Before entering into insolvency you need to ensure you declare every little thing– simply because if it is identified that you made a preferential payment, or entered into an undervalued transaction this will be a minor breach and will extend the term. On top of that, you should ensure that you stay away from particular things while you are insolvent, so please:
- Do not serve as a Director of a company.
- Do not leave Australia without the permission of your Trustee
- Do not acquire credit more that the prescribed amount
- Do not fail to show up at a meeting of your lenders
- Do not fail to reveal a beneficial interest or property
- 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 facets that if you find yourself in violation can effectively end up increasing the term to 8 years. This is certainly something you will wish to steer clear of. So please, while Insolvent:
- Do not fail to give written explanation to the trustee concerning any issues arising from residential property or income.
- Do not incur more credit than the prescribed amount
- Do not depart Australia and fail to come back when asked 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 disclose the purpose of any money spent or property sold 5 years before personal bankruptcy
And again, if prior to personal bankruptcy you did any of the following:
- Intentionally offered any false or misleading details to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the objective to defeat creditors
Bankruptcy and these forms of term extensions in Australia are usually confusing and complicated, and unfortunately, what I have just listed is only the tip of the Iceberg. If you need to know more about Bankruptcy don’t hesitate to speak with us here at Bankruptcy Experts Hervey Bay on 1300 795 575, or visit our website: www.bankruptcyexpertsherveybay.com.au