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

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

My mission right now is to try and inform you regarding likely problems you may have with Bankruptcy to make sure that you can stay clear of making mistakes!

When it includes Bankruptcy, there is a great deal of confusion and false information because of how complicated it might be, and how emotionally charged individuals are when they are going through it. Here at Bankruptcy Experts Mackay we certainly wish to make sure individuals know that if you make mistakes it can be extended from 3 years to 5 (or even 8) years!

Yes, this indicates that you will continue being even longer in the ‘Bankruptcy limbo’ so stay clear of triggering any of the following facets – because if you do, then Bankruptcy ends up being a lot more tricky.

The general factor that a Bankruptcy duration will be stretched is if you behave dishonestly or unethically.


MINOR BREACHES – Extend to 5 Years

As I said, Bankruptcy is complicated, so just make sure you act truthfully. Before entering into insolvency you have to ensure you declare every little thing– because if it is identified that you made a special payment, or entered into an underestimated transaction this will be a minor breach and will lengthen the term. On top of that, you need to make certain that you stay away from certain aspects while you are insolvent, so please:

– Do not function 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 lenders

– Do not fail to reveal a beneficial interest or asset

– Do not fail to go to a meeting organized 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 find yourself extending the term to 8 years. This is undoubtedly something you will want to avoid. So please, while Insolvent:

– Do not fail to give written explanation to the trustee concerning any issues developing from residential 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 requested you to sign it.

– Do not fail to disclose a beneficial interest in an asset.

– Do not fail to disclose the purpose of any money spent or property sold 5 years before insolvency

And again, if prior to bankruptcy you did any of the following:

– Deliberately offered any false or misleading details to your trustee

– Participated in a transaction, or extreme payments into your superannuation fund with the intent to overpower creditors

Bankruptcy and these sorts of duration extensions in Australia are regularly challenging and complicated, and unfortunately, what I have just listed is only the tip of the Iceberg. If you need to know more about Bankruptcy don’t hesitate to speak with us here at Bankruptcy Experts Mackay on 1300 795 575, or visit our website:

By | 2018-07-05T07:23:22+00:00 December 20, 2016|Article, bankruptcy, blog|