Do you know how
much Bankruptcy Bunbury is changing?
The Australian Government in late 2015 recommended some innate changes to the
Bankruptcy Laws in Australia. One of the most significant of these is the
length of time that a person is bankrupt for. Right now, there is a minimum amount
of time that you must continue to be bankrupt, however, this 3 year period may
very well be reduced down to just 12 months. So if you are inquiring about
Bankruptcy, this news may be somewhat important to you.
Mark Carnegie in
the Financial Review on the 7th December 2015 recommended that "the
proposed changes to ease the burden of bankruptcy laws didn't go far enough and
the government should adopt US-style laws to protect the family home".
These
adjustments to the issue of Bankruptcy will take 18 months to implement. Mr
Carnegie, went on to say in the Financial Review that shielding family assets
was important because "banks just terrorise small business and the mental
health consequences to society are enormous".
The problem is
Australia's bankruptcy laws discouraged investors from supporting start-ups,
and therefore mentoring had been "driven out of the system".
"They
naturally find it very intimidating themselves personally and with their assets
at risk in a risky early-stage deal, but with their own money in the deal and a
lightened-up provision I think we 'd probably see more willingness. It could be
more important than the money.".
Fraudulent Behavior
The argument
surrounding this Bankruptcy issue in Bunbury that some come up with is that this
shift will only invite fraudulent behavior opening pandora's box so to speak
for the unscrupulous to exploitation of the bankruptcy system. We have looked
at the minimum, but on the other side of the problem, The government is not
proposing to change the maximum term of 8 years if it deems a bankrupt has
operated in an unethical or fraudulent way, and there are no recommendations to
change the consequences of misrepresenting yourself or financial situation when
filing for bankruptcy in Australia.
As an insolvency
professional in Bunbury, I have a reasonable share of knowledge when it
concerns Bankruptcy. And having dealt with countless bankruptcy cases in
Bunbury I have never caught someone abusing the system or acting in an immoral
way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy,
each week I help a small business owner or entrepreneur suffer through the very
complex task of bankruptcy, not once have I thought they are happy about it.
The average small business owner or entrepreneur in Bunbury does not start out
taking enormous financial risks with the intention to fail. The media prefers
citing the apparent misuse that will be rampant if these changes occur, what a
joke!
A Win for Small Business
These proposed
changes will be good for often the most effective and brightest in Bunbury not
get kicked out of the game financially for financial decisions often out of
their control. Most small business owners I help with Bankruptcy, are
hardworking, tax paying, companies keeping this country going.
Now there is a
fine line with exactly what the government is trying to do here, since they are
trying to balance helping individuals who have made decisions out of their
control, and preventing people from making missteps that land them in trouble
and as a result an issue of Bankruptcy. However you likewise don't want to
eliminate the experience and knowledge that business owners have. You
undoubtedly don't want to smash people simply because they have had a genuine
failure in a large or small start-up venture that has not succeeded.
At the big end
of town large established companies have long been criticised for their failure
to innovate - lets face it they would be more likely to do so if the risks of
bankruptcy were decreased because directors are distressed they'll be
personally accountable in an insolvency arrangement if the new project doesn't
work out.
The government's
suggested 'safe haven' modifications for directors of companies will enable
Australia to more fully explore and innovate, which will make big changes for Bankruptcy.
I can not imagine, that these variations will be damaging to Australia's
economy, in reality these bankruptcy laws will save the tax payer in all areas
of health - Especially in the mental health field because the emotional cost of
bankruptcy is enormous. When it comes to Bankruptcy in Bunbury not a day passes
where I don't hear the tragic experiences of relationship failures, thoughts of
suicide and the list continues.
Bankruptcy helps
save lives, and it could save yours. If you need some help with your debts in
Bunbury or are just considering Bankruptcy, don't hesitate to give us a call
here at Bankruptcy Experts Bunbury on 1300 795 575, or visit our website:bankruptcyexpertsbunbury.com.au
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