Do you have an
idea of how much Bankruptcy in Gold Coast is changing? The Australian
Government at the end of 2015 submitted some radical changes to the Bankruptcy
Laws in Australia. One of the most significant of these is the length of time
that a person is bankrupt for. Now, there is a minimum amount of time that you
must stay bankrupt, but, this 3 year period may in fact be reduced to just 12
months. So if you are inquiring about Bankruptcy, this news may be somewhat
important to you.
Mark Carnegie in
the Financial Review on the 7th December 2015 recommended 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 shifts to
the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on
to say in the Financial Review that giving protection to family assets was
important because "banks just terrorise small business and the mental
health consequences to society are enormous".
The problem is
Australia's bankruptcy laws put off 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
surrounding this Bankruptcy issue in Gold Coast that some make is that this
change will only strengthen fraudulent behavior opening pandora's box in a
manner of speaking for the unscrupulous to maltreatment of the bankruptcy
system. We have looked at 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 acted in an unethical or fraudulent way, and there are no
plans to change the effects of misrepresenting yourself or financial position
when filing for bankruptcy in Australia.
As an insolvency
professional in Gold Coast, I have a decent share of knowledge when it concerns
Bankruptcy. And having dealt with countless bankruptcy cases in Gold Coast I
have never struck someone abusing the system or acting in an unaccountable way
as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy,
each week I help a small business owner or entrepreneur undergo the very tough
task of bankruptcy, not once have I sensed they are happy about it. The typical
small business owner or entrepreneur in Gold Coast does not start out taking
enormous financial risks with the intention to fail. The media really loves
citing the apparent injustice that will be rampant if these changes occur, what
a joke!
A Win for Small Business
These proposed
changes will be good for often the very best and brightest in Gold Coast not
get tossed out of the game financially for financial decisions often outside 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 exactly what the government is trying to do here,
since they are aiming to balance helping individuals who have made decisions
out of their control, and dissuading people from making mistakes that land them
in trouble and as a result an issue of Bankruptcy. However you also don't want
to get rid of the experience and knowledge that business owners have. You
absolutely don't want to smash people simply because they have had a genuine
failure in a large or small start-up project that has not worked out.
At the major end
of town large 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
bankruptcy were scaled down because directors are concerned they'll be
personally liable in an insolvency arrangement if the new venture 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 updates for Bankruptcy.
I can not imagine, that these refinements will be detrimental to Australia's
economy, actually these bankruptcy laws will save the tax payer in all areas of
health - Especially in the mental health industry because the emotional cost of
bankruptcy is substantial. When it comes to Bankruptcy in
Gold Coast not a day goes by where I don't find out the tragic stories of
relationship failures, thoughts of suicide and the list goes on.
Bankruptcy helps
save lives, and it could save yours. If you really need some help with your
debts in Gold Coast or are just thinking about Bankruptcy, don't hesitate to
contact us here at Fresh Start Solutions Gold Coast on 1300 818 575, or visit
our website: www.freshstartsolutions.com.au/bankruptcy-goldcoast.
