The term of bankruptcy generally lasts for a period of 3 years. However, under certain circumstances, the term can be extended.
For example:
- If a bankrupt fails to follow their trustee’s directions, or obtains credit of more than $5.000.00 without disclosing the bankruptcy, the term of bankruptcy can be extended to 5 years.
- In more serious cases, when the bankrupt intentionally tries to deceive their trustee or act with the intention to defraud their creditors the period of bankruptcy can be extended to 8 years.
The message is clear – a bankrupt must act honestly and openly with his or her trustee or risk extension of time in bankruptcy.
For further advice regarding the term of bankruptcy, please contact our Business & Commercial Team.
Further reading

elringtons lawyers regularly provide legal advice in relation to a range of commercial matters. Please contact our Business & Commercial Team for more information or to make an appointment call (02) 6206 1300