Do you have an idea of just how much Bankruptcy
in Newcastle is changing? The Australian Government at the end of 2015
submitted some progressive 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. Currently, there is a minimum amount of time that you must stay bankrupt,
having said that, 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 changes to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that safeguarding family assets was essential because "banks just
terrorise small business and the mental health consequences to society are
enormous".
The problem is Australia's bankruptcy laws
prevented 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 controversy around this Bankruptcy
issue in Newcastle 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
exploitation of the bankruptcy system. We have considered the minimum, but on
the other side of the problem, 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 proposals to change the outcomes of
misrepresenting yourself or financial situation when filing for bankruptcy in
Australia.
As a bankruptcy professional in Newcastle,
I have a fair share of experience when it comes to Bankruptcy. And having dealt
with thousands of bankruptcy cases in Newcastle I have never come across
someone abusing the system or acting in an unaccountable way as to exploit the
bankruptcy laws in Australia. When it comes to Bankruptcy, every week I help a
small business owner or entrepreneur go through the very difficult task of
bankruptcy, not once have I believed they are happy about it. The typical small
business owner or entrepreneur in Newcastle does not start out taking enormous
financial risks with the intention to fail. The media prefers citing the
apparent injustice 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 Newcastle 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, managers
keeping this country going.
Now there 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 therefore an issue of Bankruptcy.
However you likewise don't want to wipe out the experience and knowledge that
business owners have. You certainly don't want to shatter people simply because
they have had a genuine failure in a large or small start-up project that has
not worked out.
At the major 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 bankruptcy were
reduced because directors are troubled they'll be personally liable in an
insolvency arrangement if the new endeavor doesn't work out.
The government's suggested 'safe haven'
changes for directors of companies will enable Australia to more fully explore
and innovate, which will make big updates for Bankruptcy. I can not imagine,
that these improvements 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 field because the emotional cost of bankruptcy is enormous.
When it comes to Bankruptcy in Newcastle not a day passes where I don't hear
the tragic stories of relationship failures, thoughts of suicide and the list
goes on.
Bankruptcy helps save lives, and it could
save yours. If you really need some assistance with your debts in Newcastle or
are just thinking of Bankruptcy, don't hesitate to contact us here at
Bankruptcy Experts Newcastle on 1300 795 575, or visit our website: www.bankruptcyexpertsnewcastle.com.au
