Bankruptcy in Melbourne – Changes that can help Small Business and Entrepreneurs.
Written 15th March 2016 – By Charles Bosse– If checking this out considerably after this date, please review some of our additional blogs to validate the relevant information is still up to date. Do you know just how much Bankruptcy in Melbourne is going to be changing? The Australian Government at the end of 2015 came up with some extreme plans and potential changes to the Bankruptcy Laws in Australia, especially when it concerns the duration of personal bankruptcy. At this time, there is a minimum amount of time that you will need to stay insolvent, having said that, this 3 year period may very well be reduced to just 12 months. So if you are looking into insolvency, these alterations are going to be rather critical to you! Exactly how did this all happen? Well, Mark Carnegie (an expert in this field) remarked back in December 2015 in the Financial Review that there was going to be recommendations 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 complication is he aiming to resolve? Currently, the legislations don’t have sufficient protections, to the extent that Mr Carnegie, continued to point out in the Financial Review that providing security to household assets was necessary since “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 several people 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”. This suggests that currently, the existing legislations are costing the overall economy and they may work for you, however they could be manipulated and occasionally the innocent fall in the gaps and get unjustly penalized. What is being proposed? The proposal is to have the 3 year bankruptcy time period decreased to just 12 months when there is zero indication of fraud or dishonest practices. These developments will mean a lot for Bankruptcy and will likely take at least 18 months to apply. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a term that includes all the bad points. So when it concerns Bankruptcy, this means that it will cover acting dishonestly, hiding assets, taking negligent risks, acting unethically or just generally trying to scam individuals. One proposed strategy is that while they are decreasing the time for those acting honestly, they could actually implement a counter proposal to target those acting particularly dishonestly and raise the amount of time. Certainly there are already some regulations in place for whenever you do not follow certain regulations (and I encourage you to read more about Bankruptcy to make sure you don’t accidentally break these guidelines) but it will be interesting to see how this develops. So is this a Win for Small Business? Yes, definitely! This is going to be excellent for small business and I hope that you read these modifications to Bankruptcy and are getting as thrilled as I am. These suggested changes will benefit businesses because it will encourage additional individuals to get engaged and take estimated risks– There will however be consequences in effect, but it will not be unfairly reprimanding those who make genuinely honest miscalculations. Many business owners I help with Bankruptcy, are hardworking, tax paying, companies that are keeping this country going and so I am thrilled to observe what will be taking place next with this, and how it will impact Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really require some assistance with your debts in Melbourne or are just thinking about Bankruptcy, don’t hesitate to contact us here at Bankruptcy Experts Melbourne on 1300 795 575, or visit our website: www.bankruptcyexpertsmelbourne.com.au