Do you appreciate how much Bankruptcy in
Geelong is changing? The Australian Government at the end of 2015 submitted
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 remain bankrupt, having
said that, this 3 year period may very well be reduced down to just 12 months.
So if you are inquiring about Bankruptcy, this news may be quite 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 improvements to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that shielding 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
deterred 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 debate surrounding this Bankruptcy
issue in Geelong that some come up with is that this modification will only
encourage 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 issue, The government is not suggesting
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 propositions to change the
repercussions of misrepresenting yourself or financial position when filing for
bankruptcy in Australia.
As a bankruptcy professional in Geelong, I
have a reasonable share of knowledge when it comes to Bankruptcy. And having
dealt with countless bankruptcy cases in Geelong I have never uncovered someone
abusing the system or acting in an immoral way as to exploit the insolvency
laws in Australia. When it comes to Bankruptcy, each week I help a small
business owner or entrepreneur suffer through the very challenging task of
bankruptcy, not once have I believed they are happy about it. The average small
business owner or entrepreneur in Geelong does not start out taking enormous
financial risks with the intent to fail. The media loves citing the apparent
abuse 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 very best and brightest in Geelong 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, since they are attempting to balance helping
individuals who have made decisions out of their control, and dissuading people
from making missteps 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 certainly don't want to shatter people simply because they
have had a sincere failure in a large or small start-up project that has not
gone well.
At the big end of town large well-known
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 liable 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 updates for Bankruptcy. I can not
imagine, that these alterations will be damaging to Australia's economy, in
reality 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 Geelong not a day passes where I
don't hear 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 help with your debts in Geelong or are just
thinking of Bankruptcy, feel free to give us a call here at Bankruptcy Experts
Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsgeelong.com.au
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