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