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

Home/bankrupt, blog/Bankruptcy in Adelaide – Changes that can help Small Business and Entrepreneurs.

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

office-computer-night-536907925-hero-images-getty-compressor

Written 15th March 2016 – By Charles Bosse– If reading this considerably after this date, please review a few of our other blog posts to verify the data is still up to date. Do you realise just how much Bankruptcy in Adelaide is going to be changing? The Australian Government by the end of 2015 produced some extreme proposals and possible modifications to the Bankruptcy Laws in Australia, particularly when it concerns the duration of personal bankruptcy. At the moment, there is a minimal quantity of time that you need to remain insolvent, having said that, this 3 year duration may very well be lowered to just 12 months. So if you are looking at insolvency, these changes are going to be rather critical to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this field) commented 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 issue is he attempting to fix? Currently, the laws don’t have sufficient protections, to the level that Mr Carnegie, proceeded to point out in the Financial Review that giving safeguards to household assets was essential because “banks just terrorise small business and the mental health consequences to society are enormous”. The issue is Australia’s bankruptcy laws discouraged financiers from supporting start-ups, and therefore mentoring had been “driven out of the system” and too many people 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”. This indicates that at the moment, the existing laws are costing the economy and they may work for you, but they can possibly be manipulated and in some cases the innocent fall within the voids 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 behaviour. These improvements will signify 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 phrase that includes every one of the negative factors. So when it comes to Bankruptcy, this indicates that it will cover behaving dishonestly, hiding assets, taking negligent risks, behaving unethically or just generally trying to scam people. One proposed idea is that whilst they are minimizing the amount of time for people behaving truthfully, they could in fact implement a counter proposal to pinpoint those acting significantly dishonestly and raise the time. There are already some regulations in place for when you do not observe certain 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 see how this evolves. So is this a Win for Small Business? Yes, absolutely! This is going to be great for business and I hope that you are reading these modifications to Bankruptcy and are getting as delighted as I am. These proposed changes will be good for businesses because it can motivate more people to get engaged and take estimated risks– There will nonetheless be consequences in place, but it will not be unfairly penalizing people who make truly honest miscalculations. Many business owners I assist with Bankruptcy, are hardworking, tax paying, companies that are keeping this nation going and so I am thrilled to see what will be happening next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really require some support with your debts in Adelaide or are just thinking about Bankruptcy, don’t hesitate to phone us here at Bankruptcy Experts Adelaide on 1300 795 575, or visit our website: www.bankruptcyexpertsadelaide.com.au

By | 2016-10-13T23:46:18+00:00 October 13th, 2016|bankrupt, blog|0 Comments

About the Author: