Do you have knowledge of how much Bankruptcy
in Townsville is changing? The Australian Government at the end of 2015
recommended some inherent changes to the Bankruptcy Laws in Australia. The most
significant of these is the length of time that a person is bankrupt for. At
the moment, there is a minimum amount of time that you must remain bankrupt,
but, this 3 year period may very well be reduced to just 12 months. So if you
are inquiring about Bankruptcy, this news may be considerably 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 adjustments to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that guarding 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 about this Bankruptcy issue in
Townsville that some come up with is that this modification will only
strengthen fraudulent behavior opening pandora's box in a manner of speaking
for the unscrupulous to defilement of the bankruptcy system. We have considered
the minimum, but on the other side of the problem, The government is not submitting
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 plans to change the penalties
of misrepresenting yourself or financial situation when filing for bankruptcy
in Australia.
As an insolvency professional in
Townsville, I have a reasonable share of knowledge when it comes to Bankruptcy.
And having dealt with countless bankruptcy cases in Townsville I have never
come across someone abusing the system or acting in an irresponsible way as to
exploit the insolvency laws in Australia. When it comes to Bankruptcy, each
week I help a small business owner or entrepreneur look at the very tough task
of bankruptcy, not once have I thought they are happy about it. The typical
small business owner or entrepreneur in Townsville does not start out taking
enormous financial risks with the intent to fail. The media loves citing the
apparent wrongdoing that will be rampant if these changes occur, what a joke!
A Win for Small Business.
These suggested changes will be good for
often the best and brightest in Townsville 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, companies
keeping this country going.
Truth be told there is a fine line with
precisely what the government is trying to do here, because they are attempting
to balance helping people who have made decisions out of their control, and
dissuading people from making miscalculations that land them in trouble and
consequently an issue of Bankruptcy. However you also don't want to destroy the
experience and knowledge that business owners have. You surely don't want to
shatter people simply because they have had a sincere failure in a large or
small start-up venture that has not succeeded.
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
scaled down because directors are worried they'll be personally responsible 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 changes for Bankruptcy. I cannot imagine,
that these differences will be destructive to Australia's economy, actually
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 Townsville not a day goes by
where I don't find out the tragic experiences of relationship failures,
thoughts of suicide and the list continues.
Bankruptcy helps save lives, and it could
save yours. If you need some assistance with your debts in Townsville or are
just considering Bankruptcy, feel free to phone us here at Bankruptcy Experts
Townsville on 1300 795 575, or visit our website: www.bankruptcyexpertstownsville.com.au
