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.
In part 1, 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:
- Spent money but failed to explain to the satisfaction of the Trustee, the purpose for which the money was spent; or
- Disposes of property but fails to explain to the satisfaction of the Trustee why no payment was received property disposed of.
The bankrupt leaves Australia and 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.