Bankruptcy in Joondalup – Changes that can help Small Business and Entrepreneurs.
Written 15th March 2016 – By Charles Bosse– If checking this out greatly after this date, please review a few of our additional blogs to confirm the details is still up to date. Do you know just how much Bankruptcy in Joondalup is going to be changing? The Australian Government by the end of 2015 formulated some extreme plans and potential alterations to the Bankruptcy Laws in Australia, specifically when it relates to the length of personal bankruptcy. At this time, there is a minimal amount of time that you need to remain bankrupt, having said that, this 3 year duration may very well be lowered to just 12 months. So if you are looking at going bankrupt, these changes are going to be quite important to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this area) reviewed back in December 2015 in the Financial Review that there was going to be suggestions 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 trying to fix? Currently, the legislations don’t have enough protections, to the degree that Mr Carnegie, proceeded to point out in the Financial Review that providing protection to household assets was required because “banks just terrorise small business and the mental health consequences to society are enormous”. The trouble is Australia’s bankruptcy laws prevented financiers from supporting start-ups, and therefore mentoring had been “driven out of the system” and too many individuals 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 means that right now, the current legislations are costing the economy and they may benefit you, but they could be manipulated and in some cases the innocent fall in the voids and get unfairly punished. Just what is being proposed? The proposition is to get the 3 year bankruptcy period minimized to just 12 months when there is zero indication of fraud or dishonest practices. These developments will signify a lot for Bankruptcy and will likely take at least 18 months to execute. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a term that addresses all the bad things. So when it comes to Bankruptcy, this indicates that it will cover behaving dishonestly, concealing assets, taking careless risks, acting unethically or just generally attempting to scam others. One proposed idea is that whilst they are reducing the amount of time for people acting honestly, they may in fact implement a counter proposition to pinpoint those acting particularly dishonestly and maximize the amount of time. Certainly there are currently some provisions in effect for whenever you do not observe certain rules (and I encourage you to read more about Bankruptcy to make sure you don’t accidentally 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 terrific for business and I hope that you read these alterations to Bankruptcy and are getting as delighted as I am. These recommended modifications will benefit local businesses because it can encourage additional individuals to get engaged and take estimated risks– There will still be consequences in effect, but it will not be unfairly reprimanding individuals who make genuinely honest mistakes. Most small business owners I assist with Bankruptcy, are hardworking, tax paying, businesses that are helping keep this country going and so I am excited to see what will be happening next with this, and how it will impact Bankruptcy. Bankruptcy helps save lives, and it could possibly save yours. If you really need some support with your financial obligations in Joondalup or are just thinking about Bankruptcy, don’t hesitate to call us here at Bankruptcy Experts Joondalup on 1300 795 575, or visit our website: www.bankruptcyexpertsjoondalup.com.au