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- December 20, 2016
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My mission right now is to try and inform you about likely issues you might have with Bankruptcy to make sure that you can avoid making errors!
When it involves Bankruptcy, there is a great deal of complication and false information because of how complicated it could be, and how emotionally charged a lot of people are whenever they are experiencing it. Here at Bankruptcy Experts Gladstone we definitely wish to ensure individuals know that if you make errors it can 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 of the following facets– because if you do, then Bankruptcy ends up being a lot more complicated.
The general reason that a Bankruptcy period will be stretched is if you behave dishonestly or unethically.
MINOR BREACHES – Extend to 5 Years
As I stated, Bankruptcy is complex, so just ensure you act truthfully. Before entering into bankruptcy you must make sure you state everything– simply because if it is identified that you made a preferential payment, or participated in an undervalued financial transaction this will be a minor breach and will prolong the term. In addition to that, you should ensure that you stay clear of certain things while you are insolvent, so please:
- Do not serve as a Director of a company.
- Do not leave Australia without the consent of your Trustee
- Do not incur 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 an interview organized by your trustee without reasonable 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 end up increasing the term to 8 years. This is obviously something you will wish to steer clear of. So please, while Insolvent:
- Do not fail to give written explanation to the trustee concerning any issues developing from residential property or income.
- Do not acquire more credit than the prescribed amount
- Do not depart Australia and fail to return when asked by the trustee.
- Do not refuse to sign a file after the trustee has asked for 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 invested or property sold 5 years prior to insolvency
And again, if before insolvency you did any of the following:
- Deliberately provided any false or misleading information to your trustee
- Participated in a transaction, or extreme payments into your superannuation fund with the intention to defeat creditors
Bankruptcy and these kinds of term extensions in Australia are always difficult to understand and tricky, and sadly, what I have just listed is just the tip of the Iceberg. If you need to know more about Bankruptcy do not hesitate to seek advice from us here at Bankruptcy Experts Gladstone on 1300 795 575, or go to our website: www.bankruptcyexpertsgladstone.com.au