Get Debt Free | Bankruptcy | Debt Consolidation | Specialist

Learn how your bankruptcy term can be extended for up to 8 years (ie extended by 5 years from the standard 3 year bankruptcy time period).

A Trustee in Bankruptcy is entitled to extend a bankrupt’s term of bankruptcy to 8 years if any of the following requirements are contravened:

• you entered into a transaction which was declared void by your Trustee but was entered into with the intention to defeat creditors;
• you made an excessive payment into a superannuation fund with the intent to defeat creditors;
• you failed to provide a written explanation to your Trustee about property, income or expected income;
• you intentionally provided false or misleading information to your Trustee;
• you failed to disclose full particulars of income or expected income;
• you failed to pay compulsory income contributions;
• at any time during the period of 5 years immediately before the commencement of the bankruptcy, or at any time during the bankruptcy, you:
  1. spent money but failed to explain adequately to the trustee the purpose for which the money was spent; or
  2. disposed of property but failed to explain adequately to the trustee why no money was received as a result of the disposal or what the bankrupt did with the money received as a result of the disposal;
• whilst bankrupt you left Australia and failed to return to Australia when requested to do so by your Trustee;
• you refused or failed to sign a document after your Trustee requested you to sign the document;
• you failed to disclose to your Trustee your beneficial interest in any property.

Learn how your bankruptcy term can be extended for up to 5 years (ie extended by 2 years from the standard 3 year bankruptcy time period).

A Trustee in Bankruptcy is entitled to extend a bankrupt’s term of bankruptcy to 5 years if any of the following requirements are contravened:

• when bankrupt, you left Australia without permission by your Trustee;
• you entered into a transaction prior to bankruptcy which was later declared void by your Trustee (either a preferential payment or a transaction at undervalue);
• whilst bankrupt you continued to act as a company director;
• whilst bankrupt you obtained creditor of more than $4,692, without disclosing that you were bankrupt;
• you failed to attend an examination or interview as directed by your Trustee (without a reasonable explanation);
• you failed to attend a meeting of your creditors as directed by your Trustee;
• you failed to disclose an asset or a beneficial interest in an asset;

If you commit an Act of Bankruptcy, a creditor can petition the appropriate Court in your jurisdiction to make you bankrupt.

The most common type of Act of Bankruptcy, is the non-compliance of a Bankruptcy Notice. Other Acts of Bankruptcy is to propose a Debt Agreement or to propose a Personal Insolvency Agreement by signing a 188 Authority. Therefore it is important that you understand the implications of proposing a Debt Agreement or a Personal Insolvency Agreement.

At Debt Free we will help you to formulate a successful proposal to reduce to risk of your proposal being rejected and a creditor petitioning for Bankruptcy.