Bankruptcy – How Long Does it Last ? Part 2
Robert Lindsay is a Director at Mullane & Lindsay in Newcastle and leads our Commercial & Property Law team.
Last week, our article informed of circumstances where a term of bankruptcy may be increased from 3 years to 5 years. In some circumstances, the period of bankruptcy can be extended up to 8 years if the bankrupt contravenes any of the following:
- The bankrupt enters into a transaction which is declared void by the Trustee and was entered into with the intention to defeat creditors;
- The bankrupt made an excessive payment into a Superannuation Fund with the intent to defeat creditors;
- The bankrupt fails to provide a written explanation to the Trustee about the bankrupt’s property, income or anticipated income;
- The bankrupt intentionally provides false or misleading information to the Trustee;
- The bankrupt fails to pay compulsory income contributions;
- The bankrupt within 5 years of becoming bankrupt:
(i) spent money but failed to explain to the satisfaction of the Trustee, the purpose for which the money was spent; or
(ii) Disposes of property but fails to explain to the satisfaction of the Trustee why no payment was received for property disposed of.
- The bankrupt leavesAustraliaand fails to return when requested to do so by the Trustee;
- The bankrupt refused or failed to sign a document after being requested to do so by the Trustee;
- The bankrupt intentionally failed to disclose a beneficial interest in any property to the Trustee.
Section 149D of the Bankruptcy Act sets out the grounds of objection that a Trustee may rely upon to object to the discharge of a person from bankruptcy. It is wise for a bankrupt to act honestly and openly when dealing with the Trustee.
Robert Lindsay is a Director at Mullane & Lindsay, and practises extensively in Commercial Law, Property Law and Wills & Estate Planning. If you require any assistance in this area please contact Robert Lindsay to arrange a consultation or contact our Newcastle office.