Thursday, July 7, 2016

Bankruptcy in Kalgoorlie - Changes to aid Small Business and Entrepreneurs


Do you appreciate how much Bankruptcy Kalgoorlie is changing? The Australian Government in late 2015 set forth some advanced 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. Right now, there is a minimum amount of time that you must continue to be bankrupt, however, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be pretty important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 suggested 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 alterations to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that protecting family assets was essential because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws prevented investors from supporting start-ups, and as a result 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 issue around this Bankruptcy issue in Kalgoorlie that some make is that this variation will only promote fraudulent behavior opening pandora's box so to speak for the unscrupulous to violation of the bankruptcy system. We have taken a look at the minimum, but on the other side of the issue, The government is not recommending 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 situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Kalgoorlie, I have a fair share of practical experience when it comes to Bankruptcy. And having dealt with thousands of bankruptcy cases in Kalgoorlie I have never come across someone abusing the system or acting in a reckless way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur go through the very tough task of bankruptcy, not once have I believed they are happy about it. The normal small business owner or entrepreneur in Kalgoorlie does not start out taking enormous financial risks with the intention to fail. The media prefers citing the apparent misuse that will be rampant if these changes occur, what a joke!

A Win for Small Business

These suggested changes will be good for often the very best and brightest in Kalgoorlie 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.

There is a fine line with what the government is trying to do here, since they are attempting to balance helping people who have made decisions out of their control, and discouraging people from making problems that land them in trouble and as a result an issue of Bankruptcy. However you likewise don't want to eliminate the experience and knowledge that business owners have. You absolutely don't want to smash people simply because they have had an honest failure in a large or small start-up enterprise that has not gone well.

At the major end of town large reputable 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 insolvency were lowered because directors are troubled they'll be personally responsible in an insolvency arrangement if the new venture doesn't work out.

The government's proposed 'safe haven' modifications 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 revisions will be damaging to Australia's economy, in reality 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 extensive. When it comes to Bankruptcy in Kalgoorlie not a day passes where I don't hear the tragic experiences of relationship failures, thoughts of suicide and the list goes on.


Bankruptcy helps save lives, and it could save yours. If you want some help with your debts in Kalgoorlie or are just thinking about Bankruptcy, feel free to give us a call here at Bankruptcy Experts Kalgoorlie on 1300 795 575, or visit our website:.bankruptcyexpertskalgoorlie.com.au

No comments:

Post a Comment