Do you have knowledge of how much Bankruptcy
in Toowoomba is changing? The Australian Government in late 2015 came up with
some radical 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. Now,
there is a minimum amount of time that you must continue to be bankrupt,
however, this 3 year period may in fact be reduced to just 12 months. So if you
are asking about Bankruptcy, this news may be pretty important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 recommended 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 changes 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 very important because "banks
just terrorise small business and the mental health consequences to society are
enormous".
The problem is Australia's bankruptcy laws
put off 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 controversy surrounding this Bankruptcy
issue in Toowoomba that some make is that this modification will only motivate
fraudulent behavior opening pandora's box so to speak for the unscrupulous to
abuse of the bankruptcy system. We have taken a look at the minimum, but on the
other side of the issue, The government is not suggesting 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 recommendations to change the consequences of
misrepresenting yourself or financial position when filing for bankruptcy in
Australia.
As an insolvency professional in Toowoomba,
I have a decent share of experience when it concerns Bankruptcy. And having
dealt with countless bankruptcy cases in Toowoomba I have never struck someone
abusing the system or acting in an unaccountable way as to exploit the insolvency
laws in Australia. When it comes to Bankruptcy, each week I help a small
business owner or entrepreneur look at the very formidable task of bankruptcy,
not once have I really felt they are happy about it. The standard small
business owner or entrepreneur in Toowoomba does not start out taking enormous
financial risks with the intention to fail. The media prefers citing the
apparent wrongdoing 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 most effective and brightest in Toowoomba not get tossed out of the
game financially for financial decisions often out of their control. Most small
business owners I help with Bankruptcy, are hardworking, tax paying, managers
keeping this country going.
Now there is a fine line with just what the
government is trying to do here, because they are attempting to balance helping
individuals who have made decisions out of their control, and discouraging
people from making oversights that land them in trouble and therefore an issue
of Bankruptcy. However you also don't want to wipe out 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
venture that has not succeeded.
At the big end of town large developed
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 scaled
down because directors are concerned they'll be personally liable in an
insolvency arrangement if the new venture doesn't work out.
The government's proposed 'safe haven'
changes for directors of companies will enable Australia to more fully explore
and innovate, which will make big changes for Bankruptcy. I cannot imagine,
that these alterations will be harmful to Australia's economy, indeed 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
substantial. When it comes to Bankruptcy in Toowoomba not a day passes where I
don't find out 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 want some assistance with your debts in Toowoomba or are
just considering Bankruptcy, don't hesitate to give us a call here at
Bankruptcy Experts Toowoomba on 1300 795 575, or visit our website: www.bankruptcyexpertstoowoomba.com.au
