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
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