Written 15th March 2016 – By Charles Bosse– If reading this greatly after this time, please review some of our additional blog posts to verify the data is still up to date. Do you know just how much Bankruptcy in Dandenong is going to be changing? The Australian Government at the end of 2015 developed some radical propositions and potential modifications to the Bankruptcy Laws in Australia, especially when it comes to the length of bankruptcy. Right now, there is a minimum quantity of time that you must stay bankrupt, having said that, this 3 year duration may well be decreased to just 12 months. So if you are looking into insolvency, these alterations are going to be rather critical to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this field) reviewed back in December 2015 in the Financial Review that there was going to be recommendations 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 complication is he trying to repair? Currently, the laws don’t have adequate protections, to the extent that Mr Carnegie, continued to say in the Financial Review that providing safeguards to family assets was required because “banks just terrorise small business and the mental health consequences to society are enormous”. The trouble is Australia’s bankruptcy laws prevented investors from supporting start-ups, and therefore mentoring had been “driven out of the system” and lots of people are too worried 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”. This suggests that presently, the existing rules are costing the overall economy and they may work for you, however they can possibly be exploited and occasionally the innocent fall in the gaps and get unfairly penalized. What is being proposed? The proposition is to get the 3 year bankruptcy duration minimized to just 12 months when there is zero sign of fraudulence or unethical practices. These improvements will signify a lot for Bankruptcy and will likely take at least 18 months to apply. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a phrase that addresses all of the bad points. So when it comes to Bankruptcy, this means that it will cover behaving dishonestly, concealing assets, taking negligent risks, acting unethically or just generally trying to con people. One proposed strategy is that although they are lowering the time for people acting honestly, they could actually implement a counter proposal to pinpoint those acting significantly dishonestly and maximize the time. Certainly there are currently some arrangements in effect for when you do not observe certain regulations (and I recommend you to learn more about Bankruptcy to make sure you don’t accidentally break these guidelines) but it will be interesting to see exactly how this develops. So is this a Win for Small Business? Yes, most definitely! This is going to be terrific for business and I hope that you read these alterations to Bankruptcy and are getting as excited as I am. These proposed modifications will be good for local businesses because it will urge more people to get engaged and take estimated risks– There will still be penalties in effect, but it won’t be unfairly punishing individuals who make genuinely honest miscalculations. Many small business owners I assist with Bankruptcy, are hardworking, tax paying, companies that are keeping this nation going and so I am delighted to observe what will be occurring next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really need some support with your debts in Dandenong or are just considering Bankruptcy, do not hesitate to contact us here at Bankruptcy Experts Dandenong on 1300 795 575, or visit our website: www.bankruptcyexpertsdandenong.com.au
Bankruptcy in Dandenong – Changes that can help Small Business and Entrepreneurs.