Do you understand how much Bankruptcy in
Gold Coast is changing? The Australian Government at the end of 2015 submitted
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. Right
now, there is a minimum amount of time that you must remain bankrupt, but, this
3 year period may in fact be reduced to just 12 months. So if you are inquiring
about Bankruptcy, this news may be quite 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 shifts to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that protecting 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
put off 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 issue surrounding this Bankruptcy issue
in Gold Coast that some come up with is that this change will only motivate
fraudulent behavior opening pandora's box in a manner of speaking for the
unscrupulous to maltreatment of the bankruptcy system. We have looked at the
minimum, but on the other side of the problem, 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 recommendations to
change the outcomes of misrepresenting yourself or financial position when
filing for bankruptcy in Australia.
As an insolvency professional in Gold
Coast, I have a fair share of practical experience when it comes to Bankruptcy.
And having dealt with countless bankruptcy cases in Gold Coast I have never
struck someone abusing the system or acting in a careless way as to exploit the
insolvency laws in Australia. When it comes to Bankruptcy, each week I help a
small business owner or entrepreneur look at the very formidable task of
bankruptcy, not once have I perceived they are happy about it. The ordinary
small business owner or entrepreneur in Gold Coast does not start out taking
enormous financial risks with the intention to fail. The media really loves
citing the apparent misuse 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 best and brightest in Gold Coast not get kicked 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, employers
keeping this country going.
Certainly there is a fine line with exactly
what the government is trying to do here, because they are trying to balance
helping individuals who have made decisions out of their control, and deterring
people from making problems 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 surely don't want to shatter people
simply because they have had a genuine failure in a large or small start-up
venture that has not panned out.
At the major end of town large well-known
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 cut down
because directors are worried they'll be personally responsible in an
insolvency arrangement if the new project doesn't work out.
The government's suggested 'safe haven'
modifications for directors of companies will allow Australia to more fully
explore and innovate, which will make big changes for Bankruptcy. I cannot
imagine, that these improvements will be harmful to Australia's economy,
actually 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 Gold Coast not a day passes
where I don't hear the tragic stories of relationship failures, thoughts of
suicide and the list continues.
Bankruptcy helps save lives, and it could
save yours. If you are in need of some help with your debts in Gold Coast or
are just considering Bankruptcy, don't hesitate to phone us here at Bankruptcy
Advice Gold Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/goldcoast
