Written 15th March 2016 – By Charles Bosse– If checking this out greatly after this time, feel free to review some of our additional blogs to confirm the relevant information is still up to date. Do you know just how much Bankruptcy in Sunshine Coast is likely to be changing? The Australian Government by the end of 2015 produced some radical plans and prospective changes to the Bankruptcy Laws in Australia, particularly when it concerns the length of personal bankruptcy. At this time, there is a minimum quantity of time that you will need to stay insolvent, having said that, this 3 year duration may well be decreased to just 12 months. So if you are looking into going bankrupt, these changes are going to be quite important to you! How did this all happen? Well, Mark Carnegie (an expert in this area) remarked back in December 2015 in the Financial Review that there was going to be suggestions 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 trouble is he trying to fix? Presently, the laws don’t have adequate protections, to the extent that Mr Carnegie, continued to mention in the Financial Review that providing protection to family assets was required because “banks just terrorise small business and the mental health consequences to society are enormous”. The problem is Australia’s bankruptcy laws deterred financiers from assisting start-ups, and therefore mentoring had been “driven out of the system” and lots of individuals are too worried to try and invest or try to run a 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”. That implies that at the moment, the present rules are costing the economy and they may work for you, but they could be exploited and sometimes the innocent fall within the voids and get unfairly punished. What is being proposed? The recommendation is to have the 3 year bankruptcy duration reduced to just 12 months when there is zero indication of fraud or unethical practices. These developments will mean a lot for Bankruptcy and will take approximately 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a phrase that includes every one of the bad points. So when it concerns Bankruptcy, this means that it will address behaving dishonestly, hiding assets, taking reckless risks, behaving unethically or just generally trying to con others. One proposed idea is that although they are decreasing the time for those behaving truthfully, they could actually execute a counter proposition to pinpoint those acting significantly dishonestly and maximize the amount of time. Certainly there are currently some provisions in place for when you do not follow certain regulations (and I recommend you to learn more about Bankruptcy to make sure you don’t unintentionally break these guidelines) but it will be interesting to observe how this evolves. So is this a Win for Small Business? Yes, absolutely! This is going to be excellent for business and I really hope that you read these alterations to Bankruptcy and are getting as delighted as I am. These proposed modifications will be good for businesses because it will motivate additional people to get involved and take calculated risks– There will however be penalties in place, but it will not be unfairly penalizing people who make truly honest mistakes. Many small business owners I help with Bankruptcy, are hardworking, tax paying, companies that are trying to keep this nation going and so I am delighted to see what will be occurring next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really need some assistance with your debts in Sunshine Coast or are just thinking about Bankruptcy, feel free to contact us here at Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: www.bankruptcyexpertssunshinecoast.com.au
Director of Fresh Start Solutions and specialises in helping people free themselves from overwhelming debt. Whether it's Bankruptcy, Liquidation, Insolvency Advice or simply General Debt Advice.