Bankruptcy Offences
Author: Peter Gitundu
Bankruptcy is a legally declared state in which an individual or a partnership is unable to pay off the acquired debts. This is done either voluntarily or involuntarily. Voluntary bankruptcy is done by the debtor going to court to file a petition that, he has failed to pay off debts. Involuntary petitions are filed by the creditors against the debtor. The most common of these are the voluntary petitions. Once the petition has been filed, the case can now commence. However, there are bankruptcy offences that can prevent normal procedure of the case.
In Australia, it is considered a bankruptcy offence to leave the country without permission from court. The debtor is required to seek permission from court to travel to a certain country. This is not always granted depending on certain conditions laid down by the court. There are certain countries which the bankrupt party cannot visit and doing so may send him to court. Failure to state all personal property in court is also considered unlawful. The debtor is expected to put in writing, all the personal property he has in the course of filing a petition.
In Canada, failure to live up to the stated requirements of the consumer proposal might make one end up in court for bankruptcy offences. A consumer proposal sometimes takes up the place of a petition. This allows the debtor to make arrangements with the creditors on how to pay off debts. Failure to make monthly payments towards payment of the debt is considered a bankruptcy offence and is punishable. Bankruptcy offences committed by a debtor may delay the period after which they will be considered free of their debt. Once such crimes have been committed, sometimes it is quite hard for the debtor to be trusted by lenders to be advanced funds.
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Peter Gitundu Creates Interesting And Thought Provoking Content On Bankruptcy. Read More Of His Articles Here BANKRUPTCY OFFENCES If You Enjoyed This Article, Make Sure You Read My Most Recent Posts Here BANKRUPTCY