Do you have an
idea of just how much Bankruptcy AliceSprings is changing? The Australian Government at the end of 2015 set forth
some progressive 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. At
this time, there is a minimum amount of time that you must remain bankrupt,
having said that, this 3 year period may very well be reduced 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 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 changes 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 prevented 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 controversy
about this Bankruptcy issue in Alice Springs that some come up with is that
this shift will only push fraudulent behavior opening pandora's box in a manner
of speaking for the unscrupulous to misuse of the bankruptcy system. We have
looked at the minimum, but on the other side of the issue, The government is
not proposing to change the maximum term of 8 years if it deems a bankrupt has
performed in an unethical or fraudulent way, and there are no proposals to
change the outcomes of misrepresenting yourself or financial position when
filing for bankruptcy in Australia.
As a bankruptcy
professional in Alice Springs, I have a fair share of knowledge when it comes
to Bankruptcy. And having dealt with thousands of bankruptcy cases in Alice
Springs I have never come across someone abusing the system or acting in an
immoral way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy,
every week I help a small business owner or entrepreneur suffer through the
very formidable task of bankruptcy, not once have I thought they are happy
about it. The normal small business owner or entrepreneur in Alice Springs does
not start out taking enormous financial risks with the intention to fail. The
media loves citing the apparent misuse 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 Alice
Springs 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, companies keeping this country going.
There really is
a fine line with exactly what the government is trying to do here, because they
are aiming to balance helping people who have made decisions out of their
control, and preventing people from making errors that land them in trouble and
as a result an issue of Bankruptcy. However you also don't want to get rid of
the experience and knowledge that business owners have. You absolutely don't
want to smash people simply because they have had an honest failure in a large
or small start-up enterprise that has not panned out.
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
bankruptcy were lowered because directors are worried they'll be personally
responsible in an insolvency arrangement if the new venture doesn't work out.
The government's
suggested 'safe haven' modifications for directors of companies will allow
Australia to more fully explore and innovate, which will make big updates for Bankruptcy.
I cannot imagine, that these revisions will be detrimental to Australia's
economy, indeed 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 extensive. When it comes to Bankruptcy in Alice Springs not a day
goes by where I don't find out 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 assistance with your
debts in Alice Springs or are just thinking about Bankruptcy, don't hesitate to
phone us here at Bankruptcy Experts Alice Springs on 1300 795 575, or visit our
website: bankruptcyexpertsalicesprings.com.au
No comments:
Post a Comment