What Defines Our Life

Financial distress is a legally declared state in which an individual or business is in a financial crisis. There are alternatives to this situation, also known as bankruptcy. Among them is the individual voluntary agreement in which the debtor makes an agreement on how to settle the debt. The other option is the fast track individual voluntary agreement in which case the case can be nullified.

There are actions that are considered bankruptcy offences when committed while one is still under financial distress. One of this is borrowing money while still under insolvency without letting the lender know that you are insolvent. One is also not allowed to operate a business under a new name without revealing the original name under which they became financial distressed. One cannot also act as a director of a company in cases where they have been declared insolvent.

Other insolvency offences include gambling, not keeping proper records on financial affairs and getting money for trade from lenders with no intention of paying even when its clear that the borrower cannot pay. Other offences include not cooperating with the court officials or failing to take a court summon seriously. It is also considered a criminal offence in cases where the debtor pays some creditors over others before the court has issued a discharge.

If the debtor decides to hide some of the assets so that they cannot be taken over by the court, they risk being charged in court for this offence. Bankruptcy offences may lead to the period within which a discharge may be given to be extended to fifteen years. Normally a discharge order which relieves the debtor from responsibilities towards the property is issued after one year after filing a petition.

Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Bankruptcy Offences, Read More Of His Articles Here BANKRUPTCY OFFENCES

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