My objective today is to try and alert you about possible problems you may have with Bankruptcy so that you can avoid making errors!
When it includes Bankruptcy, there is a great deal of complication and misinformation as a result of how challenging it can be, and how emotionally charged a lot of people are when they are undergoing it. Here at Bankruptcy Experts Cairns we absolutely intend to ensure people realize that if you make errors it could be extended from 3 years to 5 (or even 8) years!
Yes, this suggests that you will stay even further in the ‘Bankruptcy limbo’ so avoid triggering any one of the following facets– because if you do, then Bankruptcy becomes much more tricky.
The general reason that a Bankruptcy duration will be extended is if you behave dishonestly or unethically.
MINOR BREACHES– Extend to 5 Years
As I stated, Bankruptcy is complex, so just make sure you behave truthfully. Before entering into insolvency you have to make sure you declare everything– because if it is found that you made a preferential payment, or participated in an underestimated financial transaction this will be a minor breach and will increase the term. In addition to that, you have to make certain that you stay away from certain aspects while you are bankrupt, so please:
- Do not function as a Director of a company.
- Do not leave Australia without the permission 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 reveal a beneficial interest or asset
- Do not fail to go to an interview organized by your trustee without reasonable explanation.
MAJOR BREACHES– Extend to 8 Years.
So when it relates to Bankruptcy, there are some aspects that if you find yourself in violation can effectively find yourself increasing the term to 8 years. This is undoubtedly something you will wish to prevent. So please, while Bankrupt:
- 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 requested by the trustee.
- Do not refuse to sign a file after the trustee has requested 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 spent or property sold 5 years prior to insolvency
And furthermore, if before personal bankruptcy you did any of the following:
- Intentionally offered any false or misleading information to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the intent to defeat creditors
Bankruptcy and these sorts of term increases in Australia are typically difficult and complicated, and unfortunately, what I have just detailed is only the tip of the Iceberg. If you need to know more about Bankruptcy feel free to consult with us here at Bankruptcy Experts Cairns on 1300 795 575, or visit our website: Bankrupt Cairns