Do you recognize
just how much Bankruptcy Maitland is
changing? The Australian Government at the end of 2015 submitted some innate
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, but, this 3 year
period may very well be reduced to just 12 months. So if you are inquiring
about Bankruptcy, this news may be rather 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
adjustments 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 very 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 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 debate
around this Bankruptcy issue in Maitland that some make is that this change will
only encourage fraudulent behavior opening pandora's box so to speak for the
unscrupulous to misuse of the bankruptcy system. We have looked into the
minimum, but on the other side of the issue, The government is not suggesting
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 suggestions to change the
implications of misrepresenting yourself or financial position when filing for
bankruptcy in Australia.
As a bankruptcy
professional in Maitland, I have a fair share of experience when it comes to Bankruptcy.
And having dealt with thousands of bankruptcy cases in Maitland I have never
caught someone abusing the system or acting in an irresponsible way as to
exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, every
week I help a small business owner or entrepreneur look at the very problematic
task of bankruptcy, not once have I perceived they are happy about it. The
typical small business owner or entrepreneur in Maitland does not start out
taking enormous financial risks with the intent to fail. The media really loves
citing the apparent wrongdoing 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 Maitland not
get tossed out 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.
Now there is a
fine line with precisely what the government is trying to do here, since they
are aiming to balance helping individuals who have made decisions out of their
control, and deterring people from making oversights that land them in trouble
and consequently an issue of Bankruptcy. However you likewise 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 an honest failure in a
large or small start-up enterprise that has not gone well.
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 lessened because directors are distressed they'll be personally
accountable in an insolvency arrangement if the new endeavour doesn't work out.
The government's
proposed 'safe haven' changes for directors of companies will enable Australia
to more fully explore and innovate, which will make big updates for Bankruptcy.
I can not imagine, that these revisions will be damaging to Australia's
economy, in reality 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 substantial. When it comes to Bankruptcy in Maitland not a day
passes where I don't find out the tragic stories of relationship failures,
thoughts of suicide and the list continues.
Bankruptcy helps
save lives, and it could save yours. If you want some help with your debts in
Maitland or are just thinking about Bankruptcy, feel free to call us here at
Bankruptcy Experts Maitland on 1300 795 575, or visit our website: bankruptcyexpertsmaitland.com.au
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