Bankruptcy in Canberra – Changes that can help Small Business and Entrepreneurs.
Written 15th March 2016 – By Charles Bosse– If checking this out greatly after this date, please read through a few of our various blog posts to verify the details is still up to date. Do you realise just how much Bankruptcy in Canberra is likely to be changing? The Australian Government at the end of 2015 formulated some extreme propositions and potential alterations to the Bankruptcy Laws in Australia, particularly when it involves the duration of bankruptcy. At this time, there is a minimal amount of time that you need to stay insolvent, having said that, this 3 year period may effectively be reduced to just 12 months. So if you are looking into bankruptcy, these alterations are going to be rather important to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this area) remarked back in December 2015 in the Financial Review that there was going to be suggestions for “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”. What trouble is he attempting to resolve? Currently, the laws don’t have enough protections, to the degree that Mr Carnegie, went on to mention in the Financial Review that giving safeguards to household assets was essential because “banks just terrorise small business and the mental health consequences to society are enormous”. The problem is Australia’s bankruptcy laws deterred financiers from assisting start-ups, and therefore mentoring had been “driven out of the system” and too many individuals are too anxious to try and invest or try to run a small business. “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”. That indicates that currently, the existing rules are costing the overall economy and they may benefit you, but they can be exploited and occasionally the innocent fall in the gaps and get unfairly punished. What is being proposed? The proposal is to get the 3 year bankruptcy period reduced to just 12 months when there is no sign of fraud or dishonest behaviour. These developments will mean a lot for Bankruptcy and will take at least 18 months to execute. What is Fraudulent Behaviour? Fraudulent behaviour is basically a phrase that covers every one of the negative factors. So when it concerns Bankruptcy, this indicates that it will deal with behaving dishonestly, hiding assets, taking reckless risks, behaving unethically or just commonly trying to con others. One proposed concept is that whilst they are minimizing the time for those acting truthfully, they could in fact execute a counter proposal to pinpoint those behaving especially dishonestly and increase the amount of time. Certainly there are already some provisions in position for whenever you do not observe particular guidelines (and I encourage you to learn more about Bankruptcy to make sure you don’t accidentally break these guidelines) but it will be interesting to see how this develops. So is this a Win for Small Business? Yes, absolutely! This is going to be great for small business and I really hope that you are reading these changes to Bankruptcy and are getting as thrilled as I am. These proposed modifications will be good for small businesses because it will urge additional people to get involved and take estimated risks– There will nonetheless be penalties in place, but it won’t be unfairly punishing those who make truly honest mistakes. Most small business owners I assist with Bankruptcy, are hardworking, tax paying, companies that are trying to keep this country going and so I am delighted to see what will be happening next with this, and just how it will impact Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really need some support with your debts in Canberra or are just considering Bankruptcy, do not hesitate to call us here at Bankruptcy Experts Canberra on 1300 795 575, or visit our website: www.bankruptcyexpertscanberra.com.au