Thursday, February 25, 2016

Bankruptcy in Brisbane - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have knowledge of how much Bankruptcy in Brisbane is changing? The Australian Government at the end of 2015 moved for some foundational 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 the moment, 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 considerably 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 changes to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that giving protection to 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 discouraged 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 Behaviour.

The debate around this Bankruptcy issue in Brisbane that some come up with is that this change will only motivate fraudulent behaviour opening pandora's box in a manner of speaking for the unscrupulous to misuse of the bankruptcy system. We have taken a look at the minimum, but on the other side of the matter, The government is not recommending to change the maximum term of 8 years if it deems a bankrupt has operated in an unethical or fraudulent way, and there are no proposals to change the repercussions of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Brisbane, I have a fair share of knowledge when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Brisbane I have never come across someone abusing the system or acting in an unaccountable way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur undergo the very complicated task of bankruptcy, not once have I perceived they are happy about it. The ordinary small business owner or entrepreneur in Brisbane does not start out taking enormous financial risks with the intent to fail. The media prefers citing the apparent injustice 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 best and brightest in Brisbane 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.

Certainly there is a fine line with precisely what the government is trying to do here, because they are attempting to balance helping individuals who have made decisions out of their control, and preventing people from making mistakes that land them in trouble and consequently an issue of Bankruptcy. However you also don't want to destroy the experience and knowledge that business owners have. You absolutely don't want to smash people simply because they have had a sincere failure in a large or small start-up project that has not succeeded.

At the big 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 reduced because directors are troubled 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 changes for Bankruptcy. I cannot imagine, that these refinements will be detrimental 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 Brisbane not a day goes by where I don't hear the tragic experiences of relationship failures, thoughts of suicide and the list continues.


Bankruptcy helps save lives, and it could save yours. If you need some help with your debts in Brisbane or are just thinking of Bankruptcy, don't hesitate to call us here at Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: www. freshstartsolutions.com.au/bankruptcy-brisbane

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