Bankruptcy in Melbourne - Are you going to get bitten?

When people in Melbourne ask me about Bankruptcy, I tell them the simple Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to see one last sunset before he dies. The boy was hesitant, but the rattlesnake pledged not to bite him in exchange for the ride. They journeyed together only for the snake to in the end attack the boy despite his promise not to do so. The snake's answer was 'You knew what I was when you picked me up.

Acquiring the right financial advice in Melbourne when it relates to Bankruptcy is a whole lot like that little boy's experience, fraught with risk and danger, and usually skewed for the benefit of the individual providing the advice. In most cases you'll get bitten unless you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with getting financial advice as a teenager, and it has been vital to Bankruptcy. I'd been keeping my nose to the grindstone for a few years, and saved up a small amount of money I wanted to invest. It was the early 1980s so interest rates were very high and investing your money was quite profitable. I spent some time researching varied investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had great suits and plush offices, they all appeared to exude confidence and have all the answers. What hit me was that they all had an extremely different strategy of what I should do. This frustrated me so much that it put me off the entire idea of choosing any of them.

I'm sure currently you have read more than enough on the internet to be totally puzzled about Bankruptcy and precisely what to do. It would undoubtedly be easier for me to help you learn about the nature of the financial snakes you may be grabbing while you are trying to get to the bottom of your financial concerns in Melbourne. In essence, you need to try and understand what your overarching alternatives are, do your very own research into where to proceed with your strategy for Bankruptcy, and after that approach just what you feel is best in Melbourne for your requirements. Essentially, you have 3 options for who to turn to.

The first option is a Solicitor - This may appear like the go-to solution when you seem to be in trouble. But generally there is only just so much aid they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their expertise comes along with a hefty price.

Another alternative you may think of is your accountant - they are incredibly useful and vital to the process of operating your business, but for the most part, when you are thinking about Bankruptcy, your accountant won't be much help to you anymore.

Your best bet? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and basically all you have to figure out when it comes to Bankruptcy.

If you would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak to Bankruptcy Advice Melbourne on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Melbourne .

Bankruptcy in Melbourne - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

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