Do you have an
idea of just how much BankruptcyTamworth is changing? The Australian Government in late 2015 proposed some
foundational changes to the Bankruptcy Laws in Australia. 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, however, this
3 year period may in fact be reduced to just 12 months. So if you are inquiring
about Bankruptcy, this news may be fairly 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 guarding family assets
was necessary 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 Behavior
The argument
surrounding this Bankruptcy issue in Tamworth that some come up with is that
this shift will only strengthen fraudulent behavior opening pandora's box in a
manner of speaking for the unscrupulous to misuse of the bankruptcy system. We
have looked into 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 performed 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 an insolvency
professional in Tamworth, I have a fair share of experience when it concerns Bankruptcy.
And having dealt with thousands of bankruptcy cases in Tamworth I have never
struck someone abusing the system or acting in an immoral way as to exploit the
bankruptcy laws in Australia. When it comes to Bankruptcy, every 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 standard
small business owner or entrepreneur in Tamworth does not start out taking
enormous financial risks with the intent to fail. The media really loves citing
the apparent abuse 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 very best and brightest in Tamworth 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.
Now there is a
fine line with the things the government is trying to do here, since they are
aiming to balance helping individuals who have made decisions out of their
control, and preventing people from making errors that land them in trouble and
therefore an issue of Bankruptcy. However you likewise don't want to get rid of
the experience and knowledge that business owners have. You absolutely don't
want to shatter people simply because they have had a sincere failure in a
large or small start-up venture that has not worked out.
At the major end
of town large well 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 bankruptcy were lessened because directors are distressed they'll be
personally accountable in an insolvency arrangement if the new endeavor doesn't
work out.
The government's
suggested 'safe haven' modifications for directors of companies will enable
Australia to more fully explore and innovate, which will make big changes for Bankruptcy.
I cannot imagine, that these differences will be damaging to Australia's
economy, in fact 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 Tamworth 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 need some assistance with your
debts in Tamworth or are just thinking about Bankruptcy, feel free to contact
us here at Bankruptcy Experts Tamworth on 1300 795 575, or visit our website: bankruptcyexpertstamworth.com.au
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