My mission today is to try and inform you about potential troubles you might have with Bankruptcy to ensure that you can stay clear of making mistakes!
When it involves Bankruptcy, there is lots of confusion and misinformation as a result of how complex it can be, and how emotionally charged a lot of people are whenever they are going through it. Here at Bankruptcy Experts Perth we definitely wish to make sure people know that if you make mistakes it could be stretched from 3 years to 5 (or even 8) years!
Yes, this suggests 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 becomes far more tricky.
The general factor that a Bankruptcy term will be extended is if you act dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I stated, Bankruptcy is complicated, so just make sure you behave honestly. Before entering into bankruptcy you must ensure you state 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 extend the term. In addition to that, you should make sure that you stay away from certain things while you are bankrupt, so please:
- Do not act as a Director of a company.
- Do not depart Australia without the permission 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 disclose a beneficial interest or property
- Do not fail to go to a meeting organized by your trustee without reasonable explanation.
MAJOR BREACHES – Extend to 8 Years.
So when it relates to Bankruptcy, there are some facets that if you are in violation can effectively end up prolonging 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 arising from residential property or income.
- Do not incur 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 asked for you to sign it.
- Do not fail to reveal a beneficial interest in an asset.
- Do not fail to reveal the reason of any money invested or property sold 5 years prior to bankruptcy
And furthermore, if before insolvency you did any of the following:
- Intentionally provided any false or misleading information to your trustee
- Participated in a transaction, or extreme payments into your superannuation fund with the objective to defeat lenders
Bankruptcy and these forms of term increases in Australia are typically perplexing and tricky, and unfortunately, what I have just noted is only the tip of the Iceberg. If you need to understand more about Bankruptcy do not hesitate to seek advice from us here at Bankruptcy Experts Perth on 1300 795 575, or go to our website: www.bankruptcyexpertsperth.com.au