Thursday, February 25, 2016

Bankruptcy in Sunshine Coast - Changes that can help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

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

No comments:

Post a Comment