Do you know how much Bankruptcy in Brisbane
is changing? The Australian Government at the end of 2015 came up with 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. Now, there is a
minimum amount of time that you must continue to be bankrupt, but, this 3 year
period may in fact be reduced to just 12 months. So if you are inquiring about
Bankruptcy, this news may be considerably important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 suggested 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 modifications 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
discouraged 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 Behaviour.
The argument about this Bankruptcy issue in
Brisbane that some make is that this variation will only push fraudulent behaviour
opening pandora's box in a manner of speaking for the unscrupulous to
defilement of the bankruptcy system. We have considered the minimum, but on the
other side of the problem, The government is not submitting to change the
maximum term of 8 years if it deems a bankrupt has behaved in an unethical or
fraudulent way, and there are no suggestions to change the consequences of
misrepresenting yourself or financial situation when filing for bankruptcy in
Australia.
As a bankruptcy professional in Brisbane, I
have a decent share of knowledge when it comes to Bankruptcy. And having dealt
with countless bankruptcy cases in Brisbane I have never struck someone abusing
the system or acting in a careless way as to exploit the insolvency laws in
Australia. When it comes to Bankruptcy, every week I help a small business
owner or entrepreneur look at the very tough task of bankruptcy, not once have
I thought they are happy about it. The average small business owner or
entrepreneur in Brisbane does not start out taking enormous financial risks
with the intention to fail. The media really loves citing the apparent
wrongdoing that will be rampant if these changes occur, what a joke!
A Win for Small Business.
These proposed changes will be good for
often the most effective and brightest in Brisbane not get tossed 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,
managers keeping this country going.
Truth be told there is a fine line with
exactly what the government is trying to do here, because they are attempting
to balance helping individuals who have made decisions out of their control,
and deterring people from making missteps that land them in trouble and as a
result an issue of Bankruptcy. However you also don't want to eliminate the
experience and knowledge that business owners have. You definitely don't want
to smash people simply because they have had a genuine failure in a large or
small start-up enterprise that has not worked out.
At the big 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 worried they'll be personally accountable 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 updates for Bankruptcy. I can not imagine, that
these improvements will be destructive to Australia's economy, indeed 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
substantial. When it comes to Bankruptcy in Brisbane not a day goes by where I
don't hear the tragic experiences of relationship failures, thoughts of suicide
and the list continues.
Bankruptcy helps save lives, and it could
save yours. If you want some help with your debts in Brisbane or are just
considering Bankruptcy, feel free to call us here at Bankruptcy Advice Brisbane
on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/brisbane
