Bankruptcy Problems? Did you know that your Bankruptcy duration may be prolonged?

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My goal right now is to try and inform you about possible problems you could have with Bankruptcy to make sure that you can stay clear of making errors!

When it involves Bankruptcy, there is a great deal of complication and false information because of how complex it could be, and how emotionally charged a lot of people are when they are undergoing it. Here at Bankruptcy Experts Penrith we absolutely want to make sure individuals realize that if you make mistakes it may be stretched from 3 years to 5 (or even 8) years!

Indeed, this indicates that you will continue being even further in the ‘Bankruptcy limbo’ so avoid triggering any one of the following aspects– because if you do, then Bankruptcy ends up being far more difficult.

The basic reason that a Bankruptcy period will be extended is if you act dishonestly or unethically.

Bankruptcy Penrith, Bankrupt Penrith, Insolvency Penrith

MINOR BREACHES – Extend to 5 Years

As I stated, Bankruptcy is complex, so just make sure you behave honestly. Before entering into insolvency you need to make sure you declare every little thing– simply because if it is discovered that you made a special payment, or participated in an undervalued financial transaction this will be a minor breach and will extend the term. In addition to that, you have to make sure that you stay clear of certain aspects while you are insolvent, so please:

  •  Do not act as a Director of a company.
  •  Do not leave Australia without the approval of your Trustee
  •  Do not acquire credit more that the prescribed amount
  •  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 a meeting arranged 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 find yourself in violation can effectively end up increasing the term to 8 years. This is obviously something you will wish to steer clear of. So please, while Bankrupt:

  •  Do not fail to give written explanation to the trustee concerning any issues arising from property or earnings.
  •  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 asked for you to sign it.
  •  Do not fail to reveal a beneficial interest in an asset.
  •  Do not fail to reveal the purpose of any money spent or property sold 5 years prior to insolvency

And again, if prior to bankruptcy you did any one 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 sorts of term increases in Australia are typically difficult and complicated, and sadly, what I have just noted is only the tip of the Iceberg. If you need to know more about Bankruptcy don’t hesitate to seek advice from us here at Bankruptcy Experts Penrith on 1300 795 575, or visit our website:

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