Filing for Bankruptcy Problems! – What exactly can extend your bankruptcy term?
When it concerns Filing For Bankruptcy, there is plenty of complication because it is really an area that you truly do need to have some firm advice in because typically you may end up in an even worse circumstance. That I why here at Bankruptcy Experts Australia we definitely want to make certain people are aware that there are certain things that can really make your Bankruptcy term be stretched from 3 years to 5 (or even 8) years!
Yes, this shows that you will be even longer in the ‘Bankruptcy limbo’ so heed our advice and avoid prompting any of the following areas– because if you do, then the entire area of Filing For Bankruptcy becomes far more challenging and the Trustee can actually intermediate and get your term prolonged in lieu of letting it automatically discharge.
So just how can the term be extended to 5 years?
There are a number of ways in Australia, and these are considered the ‘minor breaches’ since they only extend the term to the 5 year mark. So please, while Bankrupt:
- Do not remain to 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 attend a meeting of your creditors
- Do not fail to reveal a beneficial interest or asset
- Do not fail to go to an interview organised by your trustee without reasonable explanation.
And also, if certain additional aspects are discovered, this can also increase the term to 5 years, so if it is discovered that before Bankruptcy, you:
- Made a preferential payment
- Entered into an undervalued transaction.
So how can the term be extended to 8 years?
So when it relates to Filing For Bankruptcy, there are some areas that if you breach can really end up extending the term to 8 years. So please, while Bankrupt:
- Do not fail to give written explanation to the trustee regarding any issues arising from property or income.
- 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 explain the purpose of any money spent or property sold 5 years prior to bankruptcy
And again, if prior to bankruptcy you did any of the following:
- Deliberately provided any false or misleading information to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the intention to defeat creditors
Filing For Bankruptcy and these kinds of term extensions in Australia are confusing and complicated, these lists of problems that you may encounter are just the tip of the iceberg as far as your possibilities in Australia are concerned. If you need to know more about Filing For Bankruptcy feel free to call us here at Bankruptcy Experts Australia on 1300 795 575, or visit our website: www.bankruptcyexpertsAustralia.com.au