Do you have an idea of how much Bankruptcy
in Melbourne is changing? The Australian Government at the end of 2015
recommended some progressive changes to the Bankruptcy Laws in Australia. Among
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 stay bankrupt, but,
this 3 year period may very well be reduced to just 12 months. So if you are
inquiring about Bankruptcy, this news may be pretty important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 suggested 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 adjustments to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that guarding 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
discouraged 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 about this Bankruptcy issue in
Melbourne that some make is that this variation 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 matter, The government is not submitting 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 suggestions to change the penalties of misrepresenting yourself or
financial position when filing for bankruptcy in Australia.
As a bankruptcy professional in Melbourne,
I have a decent share of knowledge when it concerns Bankruptcy. And having
dealt with countless bankruptcy cases in Melbourne I have never struck someone
abusing the system or acting in a reckless way as to exploit the bankruptcy
laws in Australia. When it comes to Bankruptcy, every week I help a small
business owner or entrepreneur go through the very hard task of bankruptcy, not
once have I felt they are happy about it. The ordinary small business owner or
entrepreneur in Melbourne does not start out taking enormous financial risks
with the intention to fail. The media really loves citing the apparent
injustice that will be rampant if these changes occur, what a joke!
A Win for Small Business.
These suggested changes will be good for
often the most effective and brightest in Melbourne 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,
managers keeping this country going.
Truth be told there is a fine line with
what exactly the government is trying to do here, since they are trying to
balance helping individuals who have made decisions out of their control, and
dissuading people from making blunders that land them in trouble and as a
result 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 shatter people simply because they have had an honest failure in a large or
small start-up venture that has not gone well.
At the big 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 insolvency were minimized
because directors are worried they'll be personally accountable in an
insolvency arrangement if the new endeavor 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 alterations will be destructive to Australia's economy, in
fact 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 substantial. 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 are in need of some help with your debts in Melbourne or are
just considering Bankruptcy, feel free to contact us here at Fresh Start
Solutions Melbourne on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-melbourne
