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
