Do you have knowledge of just how much Going Bankrupt in Hervey Bay is changing? The Australian Government in late 2015 suggested some inherent changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. At this time, there is a minimum amount of time that you must stay bankrupt; however, 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 pretty 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 updates to the issue of Going Bankrupt will take 18 months to implement. Mr Carnegie went on to say in the Financial Review that guarding family assets was necessary 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.”
The controversy about this Going Bankrupt issue in Hervey Bay that some come up with is that this modification will only push fraudulent behaviour opening Pandora’s box so to speak for the unscrupulous to exploitation of the bankruptcy system. We have looked into the minimum, but on the other side of the matter, The government is not submitting to change the maximum term of 8 years if it deems a bankrupt has acted in an unethical or fraudulent way, and there are no recommendations to change the effects of misrepresenting yourself or financial position when filing for bankruptcy in Australia.
As a bankruptcy professional in Hervey Bay, I have a decent share of practical experience when it concerns Going Bankrupt. And having dealt with thousands of bankruptcy cases in Hervey Bay 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 Going Bankrupt, each week I help a small business owner or entrepreneur look at the very complex task of bankruptcy, not once have I felt they are happy about it. The standard small business owner or entrepreneur in Hervey Bay does not start out taking enormous financial risks with the intention to fail. The media loves citing the apparent abuse 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 Hervey Bay not get tossed out of the game financially for financial decisions often outside of their control. Most small business owners I help with Going Bankrupt, are hardworking, tax paying, employers keeping this country going.
There certainly is a fine line with what exactly 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 blunders that land them in trouble and as a result an issue of Going Bankrupt. However you likewise don’t want to get rid of the experience and knowledge that business owners have. You definitely don’t want to smash people simply because they have had an honest failure in a large or small start-up venture that has not gone well.
At the big end of town large well established companies have long been criticised for their failure to innovate – let’s face it they would be more likely to do so if the risks of insolvency were reduced because directors are worried they’ll be personally accountable in an insolvency arrangement if the new venture doesn’t work out.
The government’s proposed ‘safe haven’ changes for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Going Bankrupt. I can not imagine, that these alterations will be harmful to Australia’s economy, indeed 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 Going Bankrupt in Hervey Bay not a day goes by where I don’t find out the tragic experiences of relationship failures, thoughts of suicide and the list continues.
Going Bankrupt helps save lives, and it could save yours. If you are in need of some assistance with your debts in Hervey Bay or are just thinking of Going Bankrupt, feel free to contact us here at Hervey Bay Bankruptcy Centre on 1300 795 575, or visit our website:WWW. bankruptcyexpertsherveybay.com.au