Insolvency Advice Problems! – What can extend your bankruptcy term?
When it comes down to Insolvency Advice, there certainly is a lot of confusion because it is certainly an area that you really do really need some solid advice in because alternatively you may end up in an even more severe circumstance. That I why here at Bankruptcy Experts we truly want to ensure people are aware that there are particular things that can really make your Bankruptcy term be prolonged from 3 years to 5 (or even 8) years!
Yes, this means that you will remain even longer in the ‘Bankruptcy limbo’ so heed our advice and avoid inducing any of the following areas-because if you do, then the whole area of Insolvency Advice becomes much more complicated and the Trustee can actually step in and get your term extended instead of letting it automatically discharge.
So just how can the period be extended to 5 years?
Certainly there are a variety 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 still act as a Director of a company.
- Do not leave Australia without the permission of your Trustee
- Do not acquire credit more that the prescribed amount
- Do not fail to attend a meeting of your creditors
- Do not fail to disclose a beneficial interest or asset
- Do not fail to attend an interview arranged by your trustee without having reasonable explanation.
- And also, if certain extra aspects are discovered, this can also raise the term to 5 years, so if it is found out 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 comes down to Insolvency Advice, 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 offer written explanation to the trustee regarding any issues developing from property or income.
- Do not incur more credit than the prescribed level
- Do not depart Australia and fail to return 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 reveal 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:
- Intentionally 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
Insolvency Advice and these term extensions in Australia are confusing and complicated, these lists of complications 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 Insolvency Advice feel free to get in touch with us here at Bankruptcy Experts on 1300 795 575, we have offices in, Brisbane, Canberra, Sunshine Coast, Sydney, Melbourne, Gold Coast, Adelaide, Perth, Darwin and Hobart. or visit our website: www.BankruptcyExperts.com.au