Do you recognize just how much Bankruptcy
in Canberra is changing? The Australian Government at the end of 2015 suggested
some inherent changes to the Bankruptcy Laws in Australia. Among the most
significant of these is the length of time that a person is bankrupt for.
Currently, there is a minimum amount of time that you must remain bankrupt,
but, this 3 year period may very well be reduced to just 12 months. So if you
are inquiring about Bankruptcy, this news may be pretty important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 proposed 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 alterations to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that safeguarding 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
prevented investors from supporting start-ups, and as a result 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 around this Bankruptcy issue
in Canberra that some come up with is that this change will only motivate
fraudulent behavior opening pandora's box so to speak for the unscrupulous to
misuse of the bankruptcy system. We have looked at the minimum, but on the
other side of the matter, The government is not submitting 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 suggestions to change the repercussions of
misrepresenting yourself or financial position when filing for bankruptcy in
Australia.
As a bankruptcy professional in Canberra, I
have a fair share of practical experience when it comes to Bankruptcy. And
having dealt with countless bankruptcy cases in Canberra I have never come
across someone abusing the system or acting in an irresponsible way as to
exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, each
week I help a small business owner or entrepreneur suffer through the very
tough task of bankruptcy, not once have I thought they are happy about it. The
typical small business owner or entrepreneur in Canberra does not start out
taking enormous financial risks with the intent to fail. The media prefers
citing the apparent injustice that will be rampant if these changes occur, what
a joke!
A Win for Small Business.
These suggested changes will be good for
often the most effective and brightest in Canberra 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, managers
keeping this country going.
There certainly is a fine line with the
things the government is trying to do here, since they are attempting to
balance helping people who have made decisions out of their control, and
discouraging people from making errors that land them in trouble and therefore
an issue of Bankruptcy. However you likewise don't want to get rid of the
experience and knowledge that business owners have. You surely don't want to
shatter people simply because they have had a sincere failure in a large or
small start-up venture that has not panned out.
At the big end of town large well
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 insolvency were
reduced because directors are distressed they'll be personally responsible in
an insolvency arrangement if the new endeavor doesn't work out.
The government's proposed 'safe haven'
changes for directors of companies will allow Australia to more fully explore
and innovate, which will make big changes for Bankruptcy. I can not imagine,
that these refinements will be detrimental 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 extensive. When it comes to Bankruptcy in Canberra not a day passes where I
don't find out the tragic stories of relationship failures, thoughts of suicide
and the list goes on.
Bankruptcy helps save lives, and it could
save yours. If you need some assistance with your debts in Canberra or are just
considering Bankruptcy, feel free to contact us here at Bankruptcy Advice
Canberra on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/canberra
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