Written 15th March 2016 – By Charles Bosse– If checking this out greatly after this date, feel free to go through some of our other blogs to verify the relevant information is still up to date. Do you realise just how much Bankruptcy in Taree is going to be changing? The Australian Government at the end of 2015 developed some extreme proposals and possible alterations to the Bankruptcy Laws in Australia, especially when it comes to the length of personal bankruptcy. Right now, there is a minimum quantity of time that you will need to stay insolvent, having said that, this 3 year duration may well be lowered to just 12 months. So if you are considering insolvency, these changes are going to be rather important to you! How did this all come to be? Well, Mark Carnegie (an expert in this field) reviewed back in December 2015 in the Financial Review that there was going to be tips for “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”. What issue is he trying to repair? At the moment, the legislations don’t have sufficient protections, to the level that Mr Carnegie, continued to point out in the Financial Review that offering security to family assets was necessary since “banks just terrorise small business and the mental health consequences to society are enormous”. The issue is Australia’s bankruptcy laws deterred financiers from supporting start-ups, and for that reason mentoring had been “driven out of the system” and several people are too anxious to try and invest or try to run a small business. “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”. That implies that right now, the current laws are costing the economy and they may work for you, but they can be manipulated and in some cases the innocent fall within the gaps and get unfairly punished. What is being proposed? The proposal is to get the 3 year bankruptcy duration reduced to just 12 months when there is zero indication of fraud or dishonest behaviour. These improvements will mean a lot for Bankruptcy and will take approximately 18 months to execute. What is Fraudulent Behaviour? Fraudulent behaviour is basically a term that covers every one of the negative things. So when it comes to Bankruptcy, this indicates that it will deal with acting dishonestly, hiding assets, taking negligent risks, acting unethically or just commonly trying to scam individuals. One proposed concept is that while they are reducing the amount of time for those individuals acting honestly, they may in fact execute a counter proposition to target those acting particularly dishonestly and maximize the amount of time. There are currently some provisions in position for whenever you do not observe certain rules (and I encourage you to read more about Bankruptcy to make sure you don’t accidentally break these guidelines) but it will be interesting to see exactly how this develops. So is this a Win for Small Business? Yes, absolutely! This is going to be excellent for small business and I hope that you read these changes to Bankruptcy and are getting as excited as I am. These proposed changes will benefit businesses because it can urge more people to get involved and take estimated risks– There will still be penalties in place, but it will not be unfairly punishing those who make truly honest mistakes. Most small business owners I assist with Bankruptcy, are hardworking, tax paying, companies that are trying to keep this nation going and so I am delighted to see what will be happening next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really require some assistance with your financial obligations in Taree or are just thinking about Bankruptcy, feel free to contact us here at Bankruptcy Experts Taree on 1300 795 575, or visit our website: www.bankruptcyexpertstaree.com.au
Call: 1300 795 575
We’ll call you:
No obligation, first consultation free.
Simply fill out the following form for a call back:
What you Must know before you declare yourself bankrupt