Do you understand just how much Bankruptcy
in Sunshine Coast is changing? The Australian Government in late 2015 posed
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 stay bankrupt, having said
that, this 3 year period may very well be reduced down to just 12 months. So if
you are asking 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 protecting 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
put off 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 issue around this Bankruptcy issue in
Sunshine Coast that some make is that this change will only promote fraudulent
behavior opening pandora's box in a manner of speaking for the unscrupulous to
violation of the bankruptcy system. We have looked at the minimum, but on the
other side of the issue, The government is not recommending to change the maximum
term of 8 years if it deems a bankrupt has appeared in an unethical or
fraudulent way, and there are no suggestions to change the outcomes of
misrepresenting yourself or financial position when filing for bankruptcy in
Australia.
As an insolvency professional in Sunshine
Coast, I have a reasonable share of knowledge when it concerns Bankruptcy. And
having dealt with countless bankruptcy cases in Sunshine Coast I have never
come across someone abusing the system or acting in a careless way as to exploit
the bankruptcy laws in Australia. When it comes to Bankruptcy, every week I
help a small business owner or entrepreneur look at the very problematic task
of bankruptcy, not once have I thought they are happy about it. The average
small business owner or entrepreneur in Sunshine Coast does not start out
taking enormous financial risks with the intent to fail. The media really loves
citing the apparent injustice that will be rampant if these changes occur, what
a joke!
A Win for Small Business.
These recommended changes will be good for
often the best and brightest in Sunshine Coast not get kicked out of the game
financially for financial decisions often outside of their control. Most small
business owners I help with Bankruptcy, are hardworking, tax paying, employers
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 individuals who have made decisions out of their control, and
discouraging people from making blunders that land them in trouble and as a
result an issue of Bankruptcy. However you also don't want to wipe out the
experience and knowledge that business owners have. You undoubtedly don't want
to smash people simply because they have had an honest failure in a large or
small start-up project that has not worked out.
At the major end of town large organized
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 troubled they'll be personally accountable in an
insolvency arrangement if the new endeavor doesn't work out.
The government's suggested 'safe haven'
changes for directors of companies will allow Australia to more fully explore
and innovate, which will make big updates for Bankruptcy. I can not imagine,
that these modifications 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 sector because the emotional cost of bankruptcy
is substantial. When it comes to Bankruptcy in Sunshine Coast not a day goes by
where I don't find out the tragic stories of relationship failures, thoughts of
suicide and the list continues.
Bankruptcy helps save lives, and it could
save yours. If you really need some assistance with your debts in Sunshine
Coast or are just thinking about Bankruptcy, don't hesitate to contact us here
at Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/sunshinecoast
