My goal today is to try and alert you regarding potential problems you may have with how does bankruptcy works so that you can avoid making errors!
When it includes how does bankruptcy works, there is a great deal of difficulty and false information as a result of how complex it may be, and how emotionally charged persons are when they are undergoing it. Here at Bankruptcy Experts we definitely wish to make sure people know that if you make mistakes it may be stretched from 3 years to 5 (or even 8) years!
Yes, this suggests that you will remain even longer in the ‘Bankruptcy limbo’ so avoid triggering any one of the following areas– because if you do, then how does bankruptcy works ends up being much more tough.
The standard factor that a Bankruptcy term will be stretched is if you behave dishonestly or unethically.
MINOR BREACHES– Extend to 5 Years
As I mentioned, how does bankruptcy works is complex, so just make sure you behave genuinely. Before entering into bankruptcy you need to make sure you declare everything– because if it is identified that you made a preferential payment, or entered into an underestimated financial transaction this will be a minor breach and will extend the term. On top of that, you should make sure that you stay away from particular things while you are insolvent, so please:
- Do not work 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 lenders
- Do not fail to reveal a beneficial interest or asset
- Do not fail to go to an interview organized by your trustee without having justifiable explanation.
MAJOR BREACHES– Extend to 8 Years.
So when it relates to how does bankruptcy works, there are some areas that if you find yourself in violation can effectively end up extending the term to 8 years. This is certainly something you will want to avoid. So please, while Insolvent:
- Do not fail to give written explanation to the trustee concerning any issues arising from residential property or earnings.
- Do not incur more credit than the prescribed amount
- Do not leave 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 reveal the reason of any money spent or property sold 5 years before personal bankruptcy
And furthermore, if before insolvency you did any one of the following:
- Intentionally provided any false or misleading details to your trustee
- Entered into a transaction, or extreme payments into your superannuation fund with the intent to defeat creditors
How does bankruptcy works and these types of duration increases in Australia are typically challenging and tricky, and unfortunately, what I have just listed is only the tip of the Iceberg. If you need to understand more about how does bankruptcy works feel free to consult with us here at Bankruptcy Experts on 1300 795 575.