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In the red – bankruptcy essentials part 3

07 Sep 2015

Topics

  • Bankruptcy & Insolvency
  • Dispute Resolution
bills

The third part in our series on bankruptcy answers the question: 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.

If you need assistance with a bankruptcy, contact our dispute resolution lawyers.