Do you have knowledge of how much Bankruptcy
in Sunshine Coast is changing? The Australian Government at the end of 2015 put
forward some innate changes to the Bankruptcy Laws in Australia. Among the most
significant of these is the length of time that a person is bankrupt for.
Currently, there is a minimum amount of time that you must stay bankrupt,
however, this 3 year period may very well be reduced 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 shifts to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that safeguarding 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 put
off 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 Behavior.
The issue surrounding this Bankruptcy issue
in Sunshine Coast that some make is that this shift will only motivate
fraudulent behavior opening pandora's box so to speak for the unscrupulous to
defilement of the bankruptcy system. We have taken a look at 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 appeared in an unethical
or fraudulent way, and there are no propositions to change the penalties of
misrepresenting yourself or financial position when filing for bankruptcy in
Australia.
As an insolvency professional in Sunshine
Coast, I have a decent share of experience when it concerns Bankruptcy. And
having dealt with thousands of bankruptcy cases in Sunshine Coast I have never
caught someone abusing the system or acting in an irresponsible way as to exploit
the insolvency laws in Australia. When it comes to Bankruptcy, every 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 average
small business owner or entrepreneur in Sunshine Coast 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 recommended changes will be good for
often the very best and brightest in Sunshine Coast not get rejected of the
game financially for financial decisions often out of their control. Most small
business owners I help with Bankruptcy, are hardworking, tax paying, managers
keeping this country going.
Truth be told there is a fine line with
just what the government is trying to do here, since they are trying to balance
helping individuals who have made decisions out of their control, and
discouraging people from making miscalculations that land them in trouble and
consequently an issue of Bankruptcy. However you likewise don't want to kill
the experience and knowledge that business owners have. You certainly don't
want to shatter people simply because they have had an honest failure in a
large or small start-up venture that has not gone well.
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 insolvency were
scaled down because directors are troubled they'll be personally responsible in
an insolvency arrangement if the new endeavor doesn't work out.
The government's suggested 'safe haven'
changes for directors of companies will allow Australia to more fully explore
and innovate, which will make big changes for Bankruptcy. I can not imagine,
that these adjustments will be destructive to Australia's economy, in fact
these bankruptcy laws will save the tax payer in all areas of health - Especially
in the mental health sector because the emotional cost of bankruptcy is
extensive. When it comes to Bankruptcy in Sunshine Coast not a day passes where
I don't find out the tragic stories of relationship failures, thoughts of
suicide and the list goes on.
Bankruptcy helps save lives, and it could
save yours. If you really need some assistance with your debts in Sunshine
Coast or are just thinking about Bankruptcy, feel free to contact us here at
Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: www.bankruptcyexpertssunshinecoast.com.au
