Do you know just
how much Bankruptcy Mildura is
changing? The Australian Government at the end of 2015 moved for some
progressive changes to the Bankruptcy Laws in Australia. 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 stay bankrupt, having said that, this 3
year period may in fact be reduced 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 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 changes to
the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on
to say in the Financial Review that defending 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 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."
Fraudulent Behavior
The argument
surrounding this Bankruptcy issue in Mildura that some come up with is that
this variation will only invite fraudulent behavior opening pandora's box in a
manner of speaking for the unscrupulous to maltreatment of the bankruptcy
system. We have taken a look 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 acted in an unethical or fraudulent way, and there are
no propositions to change the repercussions of misrepresenting yourself or
financial position when filing for bankruptcy in Australia.
As an insolvency
professional in Mildura, I have a fair share of experience when it comes to Bankruptcy.
And having dealt with countless bankruptcy cases in Mildura I have never
uncovered someone abusing the system or acting in a reckless way as to exploit
the bankruptcy laws in Australia. When it comes to Bankruptcy, each week I help
a small business owner or entrepreneur go through the very tough task of
bankruptcy, not once have I thought they are happy about it. The average small
business owner or entrepreneur in Mildura does not start out taking enormous
financial risks with the intention to fail. The media 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 Mildura
not get kicked out of the game financially for financial decisions often
outside of their control. Most small business owners I help with Bankruptcy,
are hardworking, tax paying, managers keeping this country going.
Truth be told
there is a fine line with what the government is trying to do here, because
they are trying to balance helping people who have made decisions out of their
control, and discouraging people from making errors that land them in trouble
and consequently an issue of Bankruptcy. However you likewise don't want to
kill the experience and knowledge that business owners have. You undoubtedly
don't want to shatter people simply because they have had a sincere failure in
a large or small start-up enterprise that has not gone well.
At the big end
of town large well 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 cut down because directors are concerned they'll be
personally responsible in an insolvency arrangement if the new venture doesn't
work out.
The government's
proposed 'safe haven' modifications for directors of companies will allow
Australia to more fully explore and innovate, which will make big updates for Bankruptcy.
I can not imagine, that these adjustments will be harmful to Australia's
economy, in fact 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 Mildura not a day
passes where I don't hear the tragic experiences of relationship failures,
thoughts of suicide and the list continues.
Bankruptcy helps
save lives, and it could save yours. If you really need some help with your
debts in Mildura or are just thinking about Bankruptcy, feel free to contact us
here at Bankruptcy Experts Mildura on 1300 795 575, or visit our website:bankruptcyexpertsmildura.com.au
No comments:
Post a Comment