My goal today is to try and warn you about likely problems you might have with Bankruptcy to make sure that you can stay clear of making errors!
When it includes Bankruptcy, there is a great deal of difficulty and false information as a result of how tricky it can be, and how emotionally charged a lot of people are whenever they are going through it. Here at Bankruptcy Experts Fremantle we certainly intend to ensure people know that if you make errors it can be extended from 3 years to 5 (or even 8) years!
Yes, this means that you will continue being even longer in the ‘Bankruptcy limbo’ so avoid triggering any one of the following areas– because if you do, then Bankruptcy ends up being far more complicated.
The general reason that a Bankruptcy period will be stretched is if you act dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I said, Bankruptcy is complex, so just make sure you act honestly. Before entering into bankruptcy you have to ensure you state everything– 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 prolong the term. In addition to that, you should make certain that you stay away from certain aspects while you are bankrupt, 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 reveal a beneficial interest or property
- Do not fail to go to a meeting arranged by your trustee without 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 extending the term to 8 years. This is obviously something you will want to steer clear of. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee regarding any issues arising from residential property or earnings.
- Do not incur more credit than the prescribed amount
- Do not leave Australia and fail to return when requested by the trustee.
- Do not refuse to sign a file after the trustee has asked for 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 spent or property sold 5 years before personal bankruptcy
And furthermore, if prior to personal bankruptcy you did any of the following:
- Deliberately offered any false or misleading details to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the objective to overpower creditors
Bankruptcy and these kinds of term extensions in Australia are usually perplexing and complicated, and unfortunately, what I have just noted is only the tip of the Iceberg. If you need to understand more about Bankruptcy feel free to speak with us here at Bankruptcy Experts Fremantle on 1300 795 575, or go to our website: www.bankruptcyexpertsfremantle.com.au