My mission right now is to try and alert you about likely complications you could have with Bankruptcy so that you can stay away from making mistakes!
When it involves Bankruptcy, there is lots of confusion and misinformation because of how complex it can be, and how emotionally charged a lot of people are whenever they are undergoing it. Here at Bankruptcy Experts Wyong we absolutely intend to make certain people recognize that if you make mistakes it could 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 avoid triggering any one of the following areas – because if you do, then Bankruptcy ends up being far more tough.
The general reason that a Bankruptcy period will be extended is if you act dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I mentioned, Bankruptcy is complicated, so just make sure you behave honestly. Before entering into bankruptcy you have to ensure that you declare everything– simply because if it is found that you made a preferential payment, or entered into an underestimated financial transaction this will be a minor breach and will lengthen the term. On top of that, you need to ensure that you stay away from certain aspects while you are bankrupt, so please:
- Do not work as a Director of a company.
- Do not leave Australia without the approval of your Trustee
- Do not acquire credit more that the prescribed quantity
- Do not fail to show up at a meeting of your creditors
- Do not fail to disclose a beneficial interest or property
- Do not fail to go to a meeting organized by your trustee without having reasonable 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 want to prevent. So please, while Insolvent:
- Do not fail to give written explanation to the trustee concerning any issues arising from property or earnings.
- 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 reason of any money invested or property sold 5 years before insolvency
And furthermore, if before personal bankruptcy you did any of the following:
- Deliberately provided any false or misleading details to your trustee
- Participated in a transaction, or extreme payments into your superannuation fund with the intent to defeat creditors
Bankruptcy and these types of term increases in Australia are typically confusing and tricky, and unfortunately, what I have just detailed is only the tip of the Iceberg. If you need to know more about Bankruptcy do not hesitate to talk to us here at Bankruptcy Experts Wyong on 1300 795 575, or go to our website: www.bankruptcyexpertswyong.com.au