Do you know how
much Bankruptcy Albury is changing? The Australian Government at the end of
2015 moved for some radical 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 remain bankrupt,
however, this 3 year period may in fact be reduced down to just 12 months. So
if you are asking about Bankruptcy, this news may be somewhat 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 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 deterred 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
about this Bankruptcy issue in Albury that some make is that this change 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 suggestions to change the
repercussions of misrepresenting yourself or financial situation when filing
for bankruptcy in Australia.
As a bankruptcy
professional in Albury, I have a fair share of practical experience when it
comes to Bankruptcy. And having dealt with thousands of bankruptcy cases in Albury
I have never come across 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
challenging task of bankruptcy, not once have I thought they are happy about
it. The average small business owner or entrepreneur in Albury does not start
out taking enormous financial risks with the intention 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 most effective and brightest in Albury 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.
There certainly
is a fine line with just what the government is trying to do here, since they
are attempting to balance helping people who have made decisions out of their
control, and dissuading people from making problems that land them in trouble
and as a result an issue of Bankruptcy. However you also don't want to wipe out
the experience and knowledge that business owners have. You definitely don't
want to smash people simply because they have had a sincere failure in a large
or small start-up enterprise that has not panned 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 lowered because directors are distressed they'll be personally
responsible in an insolvency arrangement if the new project 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 harmful to Australia's
economy, indeed these bankruptcy laws will save the tax payer in all areas of
health - Especially in the mental health industry because the emotional cost of
bankruptcy is enormous. When it comes to Bankruptcy in Albury not a day goes by
where I don't find out the tragic experiences of relationship failures,
thoughts of suicide and the list continues.
Bankruptcy helps
save lives, and it could save yours. If you really need some assistance with
your debts in Albury or are just considering Bankruptcy, don't hesitate to
phone us here at Bankruptcy Albury on 1300 795 575, or visit our website: bankruptcyexpertsalbury.com.au
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