December 20, 2016Comments Closed

Bankruptcy Problems? Did you know that your Bankruptcy duration could be prolonged?

Posted by:admin onDecember 20, 2016

My goal today is to try and alert you regarding possible troubles you may have with Bankruptcy so that you can stay away from making errors!

When it involves Bankruptcy, there is a great deal of complication and misinformation as a result of how challenging it may be, and how emotionally charged persons are whenever they are going through it. Here at Bankruptcy Experts Mount Isa we certainly want to make sure individuals know that if you make errors it can 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 setting off any one of the following areas– because if you do, then Bankruptcy ends up being much more tricky.

The basic reason that a Bankruptcy period will be prolonged is if you act dishonestly or unethically.

Bankruptcy Experts Mount Isa

MINOR BREACHES – Extend to 5 Years

As I said, Bankruptcy is complicated, so just ensure you behave genuinely. Before entering into insolvency you need to make sure you state every little thing– simply because if it is found that you made a preferential payment, or entered into an undervalued transaction this will be a minor breach and will increase the term. On top of that, you have to ensure that you avoid certain aspects 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 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 areas that if you find yourself in violation can effectively end up increasing the term to 8 years. This is certainly something you will want to avoid. So please, while Insolvent:

  •  Do not fail to give written explanation to the trustee regarding any issues occurring from residential property or earnings.
  •  Do not acquire more credit than the prescribed amount
  •  Do not leave Australia and fail to come back when requested 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 reason of any money invested or property sold 5 years before bankruptcy

And furthermore, if prior to personal bankruptcy you did any one of the following:

  •  Deliberately provided any false or misleading information to your trustee
  •  Participated in a transaction, or extreme payments into your superannuation fund with the intent to overpower creditors

Bankruptcy and these types of duration extensions in Australia are usually difficult to understand and tricky, and sadly, what I have just detailed is only the tip of the Iceberg. If you need to know more about Bankruptcy feel free to speak with us here at Bankruptcy Experts Mount Isa on 1300 795 575, or go to our website: www.bankruptcyexpertsmountisa.com.au

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