Do you recognize
how much Bankruptcy Mackay is
changing? The Australian Government at the end of 2015 put forward some
progressive 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 stay bankrupt, but,
this 3 year period may in fact be reduced to just 12 months. So if you are
inquiring about Bankruptcy, this news may be considerably 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
improvements to the issue of Bankruptcy will take 18 months to implement. Mr
Carnegie, went on to say in the Financial Review that shielding 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
therefore 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 debate
surrounding this Bankruptcy issue in Mackay that some make is that this
revision will only motivate fraudulent behavior opening pandora's box in a
manner of speaking for the unscrupulous to exploitation of the bankruptcy
system. We have looked at the minimum, but on the other side of the matter, The
government is not proposing to change the maximum term of 8 years if it deems a
bankrupt has appeared in an unethical or fraudulent way, and there are no
suggestions to change the effects of misrepresenting yourself or financial
situation when filing for bankruptcy in Australia.
As a bankruptcy
professional in Mackay, I have a fair share of experience when it comes to Bankruptcy.
And having dealt with thousands of bankruptcy cases in Mackay I have never
uncovered someone abusing the system or acting in an irresponsible way as to
exploit the insolvency laws in Australia. When it comes to Bankruptcy, each
week I help a small business owner or entrepreneur suffer through the very
difficult task of bankruptcy, not once have I thought they are happy about it.
The typical small business owner or entrepreneur in Mackay 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 proposed
changes will be good for often the best and brightest in Mackay 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, managers keeping this country going.
There is a fine
line with exactly what the government is trying to do here, since they are
trying to balance helping individuals who have made decisions out of their
control, and deterring people from making miscalculations that land them in
trouble and consequently an issue of Bankruptcy. However you likewise don't
want to destroy the experience and knowledge that business owners have. You
undoubtedly don't want to shatter people simply because they have had an honest
failure in a large or small start-up enterprise that has not panned out.
At the major end
of town large established 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 decreased because directors are troubled they'll be personally
responsible in an insolvency arrangement if the new project doesn't work out.
The government's
suggested '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 changes will be destructive 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 Mackay not a day
passes where I don't find out the tragic experiences of relationship failures,
thoughts of suicide and the list continues.
Bankruptcy helps
save lives, and it could save yours. If you are in need of some assistance with
your debts in Mackay or are just thinking of Bankruptcy, don't hesitate to
contact us here at Bankruptcy Experts Mackay on 1300 795 575, or visit our
website:bankruptcyexpertsmackay.com.au
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