Do you understand just how much Bankruptcy
in Gold Coast is changing? The Australian Government at the end of 2015 urged
some underlying 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 remain bankrupt, but, this 3
year period may in fact be reduced down 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 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 adjustments to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that defending family assets was necessary 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 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 argument about this Bankruptcy issue in
Gold Coast that some make is that this variation will only strengthen
fraudulent behavior opening pandora's box so to speak for the unscrupulous to
maltreatment of the bankruptcy system. We have looked into 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 propositions to change the repercussions of
misrepresenting yourself or financial position when filing for bankruptcy in
Australia.
As an insolvency professional in Gold
Coast, I have a fair share of practical experience when it concerns Bankruptcy.
And having dealt with thousands of bankruptcy cases in Gold Coast 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, every
week I help a small business owner or entrepreneur look at the very challenging
task of bankruptcy, not once have I sensed they are happy about it. The typical
small business owner or entrepreneur in Gold Coast does not start out taking
enormous financial risks with the intent to fail. The media loves 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 very best and brightest in Gold Coast not get kicked 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, employers
keeping this country going.
There is a fine line with what exactly the
government is trying to do here, because they are aiming to balance helping
people who have made decisions out of their control, and discouraging people
from making problems that land them in trouble and therefore an issue of Bankruptcy.
However you likewise don't want to eliminate 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 panned out.
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 lessened
because directors are distressed they'll be personally responsible in an
insolvency arrangement if the new project doesn't work out.
The government's proposed 'safe haven'
modifications 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 differences will be harmful to Australia's economy, in fact
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 Gold Coast 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 really need some assistance with your debts in Gold Coast or
are just thinking about Bankruptcy, don't hesitate to contact us here at
Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsgoldcoast.com.au
