Bankruptcy in Shellharbour – Changes that can help Small Business and Entrepreneurs.

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Bankruptcy in Shellharbour – Changes that can help Small Business and Entrepreneurs.

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Written 15th March 2016 – By Charles Bosse– If reading this greatly after this time, please read through some of our other blogs to verify the data is still up to date. Do you know just how much Bankruptcy in Shellharbour is likely to be changing? The Australian Government by the end of 2015 came up with some extreme propositions and possible modifications to the Bankruptcy Laws in Australia, specifically when it involves the duration of bankruptcy. At the moment, there is a minimum quantity of time that you will need to stay insolvent, having said that, this 3 year period may very well be lowered to just 12 months. So if you are looking at going bankrupt, these alterations are going to be rather critical to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this area) 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 problem is he trying to fix? Currently, the laws don’t have sufficient protections, to the extent that Mr Carnegie, continued to mention in the Financial Review that providing protection to household assets was necessary since “banks just terrorise small business and the mental health consequences to society are enormous”. The issue 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 anxious to try and invest or attempt 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 indicates that presently, the current legislations are costing the economy and they may benefit you, however they could be exploited and sometimes the innocent fall in the gaps and get unfairly penalized. Just what is being proposed? The recommendation is to have the 3 year bankruptcy duration minimized to just 12 months when there is zero sign of fraud or dishonest practices. These improvements will mean a lot for Bankruptcy and will take approximately 18 months to apply. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a phrase that addresses all the negative things. So when it involves Bankruptcy, this means that it will cover acting dishonestly, concealing assets, taking reckless risks, behaving unethically or just commonly trying to con individuals. One proposed idea is that although they are reducing the time for people acting honestly, they could actually execute a counter proposal to pinpoint those acting particularly dishonestly and raise the time. Certainly there are already some regulations in effect for whenever you do not follow particular rules (and I encourage you to learn more about Bankruptcy to make sure you don’t inadvertently break these guidelines) but it will be interesting to observe how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be excellent for business and I really hope that you are reading these modifications to Bankruptcy and are getting as excited as I am. These suggested changes will benefit businesses because it will encourage additional individuals to get involved and take estimated risks– There will however be consequences in effect, but it will not be unfairly punishing individuals who make genuinely honest mistakes. Many business owners I help with Bankruptcy, are hardworking, tax paying, companies that are keeping this nation going and so I am excited to see what will be happening next with this, and how it will affect Bankruptcy. Bankruptcy helps save lives, and it could possibly save yours. If you really need some support with your debts in Shellharbour or are just considering Bankruptcy, don’t hesitate to contact us here at Bankruptcy Experts Shellharbour on 1300 795 575, or visit our website: www.bankruptcyexpertsshellharbour.com.au

By | 2016-10-14T02:48:10+00:00 October 14th, 2016|Bankrupt, Blog|0 Comments

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