Do you understand just how much Bankruptcy
in Melbourne is changing? The Australian Government at the end of 2015 moved
for some underlying 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.
At the moment, there is a minimum amount of time that you must remain bankrupt,
but, this 3 year period may in fact be reduced down to just 12 months. So if
you are asking about Bankruptcy, this news may be fairly important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 proposed 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 modifications to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that safeguarding family assets was necessary 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 argument around this Bankruptcy issue
in Melbourne that some come up with is that this revision will only encourage
fraudulent behavior opening pandora's box in a manner of speaking for the
unscrupulous to misuse of the bankruptcy system. We have taken a look at the
minimum, but on the other side of the issue, The government is not submitting to
change the maximum term of 8 years if it deems a bankrupt has behaved in an
unethical or fraudulent way, and there are no propositions to change the
consequences of misrepresenting yourself or financial position when filing for
bankruptcy in Australia.
As a bankruptcy professional in Melbourne,
I have a fair share of practical experience when it comes to Bankruptcy. And
having dealt with thousands of bankruptcy cases in Melbourne I have never come
across someone abusing the system or acting in an irresponsible way as to
exploit the insolvency laws in Australia. When it comes to Bankruptcy, every
week I help a small business owner or entrepreneur go through the very
complicated task of bankruptcy, not once have I perceived they are happy about
it. The ordinary small business owner or entrepreneur in Melbourne does not
start out taking enormous financial risks with the intent to fail. The media
prefers citing the apparent injustice that will be rampant if these changes
occur, what a joke!
A Win for Small Business.
These recommended changes will be good for
often the most effective and brightest in Melbourne not get kicked 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,
managers keeping this country going.
There is a fine line with what exactly the
government is trying to do here, because 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 therefore an issue of Bankruptcy.
However you also don't want to destroy the experience and knowledge that
business owners have. You definitely don't want to smash people simply because
they have had a sincere failure in a large or small start-up enterprise that
has not gone well.
At the major end of town large organized
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 lowered
because directors are worried they'll be personally responsible in an
insolvency arrangement if the new endeavor doesn't work out.
The government's suggested 'safe haven'
changes for directors of companies will allow Australia to more fully explore
and innovate, which will make big updates for Bankruptcy. I can not imagine,
that these modifications will be detrimental to Australia's economy, in reality
these bankruptcy laws will save the tax payer in all areas of health - Especially
in the mental health sector because the emotional cost of bankruptcy is
extensive. When it comes to Bankruptcy in Melbourne not a day passes where I
don't hear 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 need some help with your debts in Melbourne or are just
thinking of Bankruptcy, feel free to phone us here at Bankruptcy Advice
Melbourne on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/melbourne
