Do you have an
idea of how much Bankruptcy CoffsHarbour is changing? The Australian Government in late 2015 recommended
some innate changes to the Bankruptcy Laws in Australia. The most significant
of these is the length of time that a person is bankrupt for. At this time,
there is a minimum amount of time that you must continue to be bankrupt,
however, this 3 year period may in fact 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 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 protecting family assets
was very 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 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
about this Bankruptcy issue in Coffs Harbour that some come up with is that
this shift will only reinforce fraudulent behavior opening pandora's box so to
speak for the unscrupulous to defilement of the bankruptcy system. We have
taken a look at the minimum, but on the other side of the matter, The
government is not proposing to change the maximum term of 8 years if it deems a
bankrupt has acted in an unethical or fraudulent way, and there are no
recommendations to change the effects of misrepresenting yourself or financial
position when filing for bankruptcy in Australia.
As a bankruptcy
professional in Coffs Harbour, I have a decent share of knowledge when it comes
to Bankruptcy. And having dealt with countless bankruptcy cases in Coffs
Harbour I have never caught 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 look at
the very challenging task of bankruptcy, not once have I thought they are happy
about it. The typical small business owner or entrepreneur in Coffs Harbour
does not start out taking enormous financial risks with the intention to fail.
The media loves 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 best and brightest in Coffs Harbour 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 is a fine
line with the things the government is trying to do here, because they are
attempting to balance helping people who have made decisions out of their
control, and discouraging people from making oversights that land them in
trouble and therefore an issue of Bankruptcy. However you also don't want to
kill the experience and knowledge that business owners have. You surely don't
want to smash people simply because they have had a sincere failure in a large
or small start-up enterprise that has not gone well.
At the major 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
insolvency were decreased because directors are distressed they'll be
personally responsible in an insolvency arrangement if the new project doesn't
work out.
The government's
proposed 'safe haven' modifications for directors of companies will enable
Australia to more fully explore and innovate, which will make big changes for Bankruptcy.
I cannot imagine, that these differences will be detrimental to Australia's
economy, actually these bankruptcy laws will save the tax payer in all areas of
health - Especially in the mental health sector because the emotional cost of
bankruptcy is extensive. When it comes to Bankruptcy in Coffs Harbour not a day
goes by 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 Coffs Harbour or are just considering Bankruptcy, feel free to phone
us here at Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our
website: bankruptcyexpertscoffsharbour.com.au
No comments:
Post a Comment