Bankruptcy in Canberra - Are you going to get bitten?

When people in Canberra ask me about Bankruptcy, I tell them the timeless Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to see one last sunset before he passes away. The boy was reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They journeyed together only for the snake to ultimately bite the boy despite his vow not to do so. The snake's reply was 'You knew what I was when you picked me up.

Getting the right financial advice in Canberra when it concerns Bankruptcy is a whole lot like that little boy's journey, fraught with risk and danger, and normally skewed for the benefit of the individual providing the advice. In most cases you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with receiving financial advice as a teenager, and it has been key to Bankruptcy. I'd been keeping my nose to the grindstone for a few years, and saved up a small amount of money I wanted to invest. It was the early 1980s so interest rates were very high and investing your money was rather profitable. I spent time researching varying investment options, and I went to visit a few financial advisors. It was clear that they had more money than I did: they had nice suits and plush offices, they all seemed to exude confidence and have all the solutions. What hit me was that they all had a very different strategy of what I should do. This confused me a lot that it put me off the whole idea of choosing any of them.

I'm sure currently you have read more than enough on the internet to be totally bewildered about Bankruptcy and exactly what to do. It would undoubtedly be easier for me to help you understand the nature of the financial snakes you might be picking up while you are attempting to get to the bottom of your financial problems in Canberra. Basically, you need to try and understand what your overarching options are, do your own research into where to proceed with your strategy for Bankruptcy, and after that approach what you feel is best in Canberra for your requirements. Essentially, you have 3 options for who to turn to.

The first option is a Solicitor - This may seem like the go-to possibility when you appear to be in trouble. But there is only so much aid they can give on this matter. There are absolutely specialist legal advisors in bankruptcy, but their expertise comes with a hefty price.

Another choice you may consider is your accountant - they are incredibly helpful and vital to the process of running your business, but for the most part, when you are considering Bankruptcy, your accountant won't be much help to you anymore.

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and virtually all you should understand when it comes to Bankruptcy.

If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak to Bankruptcy Advice Canberra on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Canberra .

Bankruptcy in Canberra - Changes that help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

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