Bankruptcy in Bunbury – Changes that can help Small Business and Entrepreneurs.
Written 15th March 2016 – By Charles Bosse– If reading this greatly after this time, please go through a few of our other blogs to validate the data is still up to date. Do you realise just how much Bankruptcy in Bunbury is likely to be changing? The Australian Government at the end of 2015 developed some radical plans and prospective modifications to the Bankruptcy Laws in Australia, especially when it comes to the duration of bankruptcy. At the moment, there is a minimum amount of time that you will need to stay insolvent, having said that, this 3 year duration may well be decreased to just 12 months. So if you are looking at going bankrupt, these changes are going to be relatively significant to you! Exactly how did this all come to be? 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 trouble is he attempting to fix? At the moment, the laws don’t have enough protections, to the extent that Mr Carnegie, went on to say in the Financial Review that providing security to family 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 prevented investors from supporting start-ups, and for that reason mentoring had been “driven out of the system” and too many individuals are too worried to try and invest or attempt to run a small 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 implies that at the moment, the current laws are costing the overall economy and they may work for you, however they can be exploited and in some cases the innocent fall within the gaps and get unjustly penalized. What is being proposed? The proposal is to have the 3 year bankruptcy duration reduced to just 12 months when there is no sign of fraud or unethical behaviour. These improvements will mean a lot for Bankruptcy and will likely take at the very least 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a term that includes every one of the negative factors. So when it concerns Bankruptcy, this indicates that it will deal with behaving dishonestly, concealing assets, taking reckless risks, acting unethically or just commonly trying to con others. One proposed concept is that while they are decreasing the amount of time for those behaving truthfully, they may actually implement a counter proposition to pinpoint those behaving significantly dishonestly and raise the time. Certainly there are already some regulations in position for whenever you do not follow certain guidelines (and I recommend you to learn more about Bankruptcy to make sure you don’t unintentionally break these guidelines) but it will be interesting to see how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be terrific for small business and I really hope that you read these alterations to Bankruptcy and are getting as thrilled as I am. These proposed changes will benefit businesses because it can motivate additional people to get engaged and take calculated risks– There will nonetheless be penalties in effect, but it will not be unfairly penalizing those who make genuinely honest miscalculations. Most business owners I help with Bankruptcy, are hardworking, tax paying, businesses that are keeping this nation going and so I am thrilled to observe what will be taking place next with this, and how it will affect Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really require some assistance with your financial debts in Bunbury or are just considering Bankruptcy, feel free to phone us here at Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsbunbury.com.au