How long am I to be declared a bankrupt?

The term of bankruptcy generally lasts for a period of 3 years. However under certain circumstances, the term can be extended.

For example:

1. 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.
2. 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 bankruptcy, please contact:

Matthew Bridger | e: mbridger@elringtons.com.au | p: 02 6206 1300