Do you know how much Bankruptcy in Perth is
changing? The Australian Government in late 2015 recommended some foundational
changes to the Bankruptcy Laws in Australia. 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 remain bankrupt, however, this 3 year period may
very well be reduced to just 12 months. So if you are asking about Bankruptcy,
this news may be rather 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 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 essential 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 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 issue about this Bankruptcy issue in
Perth that some come up with is that this modification will only strengthen 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 appeared in an unethical or
fraudulent way, and there are no proposals to change the consequences of
misrepresenting yourself or financial situation when filing for bankruptcy in
Australia.
As an insolvency professional in Perth, I
have a fair share of knowledge when it comes to Bankruptcy. And having dealt
with thousands of bankruptcy cases in Perth I have never uncovered someone
abusing the system or acting in a reckless way as to exploit the bankruptcy
laws in Australia. When it comes to Bankruptcy, each week I help a small
business owner or entrepreneur look at the very problematic task of bankruptcy,
not once have I felt they are happy about it. The average small business owner
or entrepreneur in Perth does not start out taking enormous financial risks
with the intention to fail. The media really loves citing the apparent abuse
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 best and brightest in Perth not get rejected of the game financially
for financial decisions often outside of their control. Most small business
owners I help with Bankruptcy, are hardworking, tax paying, companies keeping
this country going.
Certainly 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
deterring people from making blunders that land them in trouble and consequently
an issue of Bankruptcy. However you also don't want to kill the experience and
knowledge that business owners have. You surely don't want to smash people
simply because they have had a genuine failure in a large or small start-up
venture that has not gone well.
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 troubled they'll be personally liable in an
insolvency arrangement if the new venture 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 cannot imagine,
that these changes will be damaging to Australia's economy, in fact these
bankruptcy laws will save the tax payer in all areas of health - Especially in
the mental health field because the emotional cost of bankruptcy is enormous.
When it comes to Bankruptcy in Perth not a day goes by 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 Perth or are just
considering Bankruptcy, don't hesitate to call us here at Bankruptcy Experts
Perth on 1300 795 575, or visit our website: www.bankruptcyexpertsperth.com.au
