Bankruptcy in Tamworth – Changes that can help Small Business and Entrepreneurs.
Written 15th March 2016 – By Charles Bosse– If reading this greatly after this time, please read through a few of our other blogs to establish the information is still up to date. Do you know just how much Bankruptcy in Tamworth is likely to be changing? The Australian Government at the end of 2015 came up with some radical propositions and possible changes to the Bankruptcy Laws in Australia, especially when it relates to the length of insolvency. At the moment, there is a minimal amount of time that you need to remain insolvent, having said that, this 3 year duration may very well be lowered to just 12 months. So if you are looking into going bankrupt, these changes are going to be rather important to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this area) reviewed back in December 2015 in the Financial Review that there was going to be recommendations for “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”. What issue is he trying to resolve? Presently, the laws don’t have enough protections, to the degree that Mr Carnegie, continued to mention in the Financial Review that giving safeguards to household assets was essential because “banks just terrorise small business and the mental health consequences to society are enormous”. The trouble is Australia’s bankruptcy laws discouraged investors from assisting start-ups, and for that reason mentoring had been “driven out of the system” and lots of individuals are too troubled to try and invest or attempt to run a business. “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”. That indicates that currently, the current rules are costing the economy and they may benefit you, but they could be exploited and occasionally the innocent fall within the voids and get unfairly punished. Just what is being proposed? The proposition is to have the 3 year bankruptcy time period decreased to just 12 months when there is zero indication of fraudulence or dishonest practices. These developments will mean a lot for Bankruptcy and will take at the very least 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a term that includes all the negative points. So when it concerns Bankruptcy, this means that it will deal with behaving dishonestly, hiding assets, taking reckless risks, behaving unethically or just commonly trying to scam others. One proposed recommendation is that while they are lowering the time for individuals behaving honestly, they may in fact carry out a counter proposition to pinpoint those acting significantly dishonestly and maximize the amount of time. Certainly there are already some arrangements in place for whenever you do not comply with particular regulations (and I recommend you to read more about Bankruptcy to make sure you don’t unintentionally break these guidelines) but it will be interesting to see exactly how this evolves. So is this a Win for Small Business? Yes, definitely! This is going to be excellent for business and I hope that you are reading these modifications to Bankruptcy and are getting as thrilled as I am. These recommended modifications will be good for businesses because it can motivate additional people to get involved and take calculated risks– There will nonetheless be consequences in place, but it will not be unfairly punishing those who make truly honest mistakes. Many small business owners I help with Bankruptcy, are hardworking, tax paying, companies that are helping keep this country going and so I am thrilled to see what will be taking place next with this, and just how it will impact Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really need some support with your financial debts in Tamworth or are just thinking about Bankruptcy, feel free to contact us here at Bankruptcy Experts Tamworth on 1300 795 575, or visit our website: www.bankruptcyexpertstamworth.com.au