Bankruptcy – How Long Does it Last ? Part 1
Robert Lindsay is a Director at Mullane & Lindsay in Newcastle and leads our Commercial & Property Law team.
Usually, if an individual becomes bankrupt then the term of the Bankruptcy is 3 years. However, the term of the bankruptcy can be extended to 8 years in total if a Trustee in bankruptcy lodges an objection to the discharge under Section 149B of the Bankruptcy Act 1966. The bankruptcy can be extended up to 5 years if the individual who is bankrupt contravenes any of the following:
• The bankrupt leaves Australia without permission of the Trustee;
• The bankrupt enters into a transaction prior to the bankruptcy which is later declared void by the Trustee (either a preferential payment or a transaction at less than full value);
• If the bankrupt continues to act as a Company Director;
• If the bankrupt obtains credit of more than $5,009.00 without first disclosing that he or she is bankrupt;
• If the bankrupt fails to attend an examination or interview as directed by the Trustee (without a reasonable explanation being given);
• If the bankrupt fails to attend a meeting of creditors as directed by the Trustee; or
• If the bankrupt fails to disclose an asset or a beneficial interest in an asset.
A person who is bankrupt is obliged to adhere to the rules set by the Bankruptcy Act 1966. Failure to do so may result in an extension of the period of the bankruptcy.
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.