Do you know how much Going Bankrupt Albury is changing? The Australian Government at the end of 2015 moved for some radical 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. Now, there is a minimum amount of time that you must remain bankrupt, however, this 3 year period may in fact be reduced down 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 adjustments to the issue of Going Bankrupt will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that protecting 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 deterred 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 argument about this Going Bankrupt issue in Albury that some make is that this change will only push fraudulent behavior opening pandora’s box in a manner of speaking for the unscrupulous to misuse of the bankruptcy system. We have looked at the minimum, but on the other side of the issue, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has performed in an unethical or fraudulent way, and there are no suggestions to change the repercussions of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.
As a bankruptcy professional in Albury, I have a fair share of practical experience when it comes to Going Bankrupt. And having dealt with thousands of bankruptcy cases in Albury I have never come across someone abusing the system or acting in a careless way as to exploit the insolvency laws in Australia. When it comes to Going Bankrupt, every week I help a small business owner or entrepreneur look at the very challenging task of bankruptcy, not once have I thought they are happy about it. The average small business owner or entrepreneur in Albury does not start out taking enormous financial risks with the intention to fail. The media really 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 most effective and brightest in Albury 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, managers keeping this country going.
There certainly is a fine line with just what the government is trying to do here, since they are attempting to balance helping people who have made decisions out of their control, and dissuading people from making problems that land them in trouble and as a result an issue of Going Bankrupt. However you also don’t want to wipe out the experience and knowledge that business owners have. You definitely don’t want to smash people simply because they have had a sincere failure in a large or small start-up enterprise that has not panned out.
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 lowered because directors are distressed 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 enable Australia to more fully explore and innovate, which will make big changes for Going Bankrupt. I cannot imagine, that these differences 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 industry because the emotional cost of bankruptcy is enormous. When it comes to Going Bankrupt in Albury 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 really need some assistance with your debts in Albury or are just considering Going Bankrupt, don’t hesitate to phone us here at Bankruptcy Experts Albury on 1300 795 575, or visit our website: bankruptcyexpertsalbury.com.au.