Do you have
knowledge of how much Bankruptcy Lismore
is changing? The Australian Government at the end of 2015 posed some inherent
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. Currently, there is
a minimum amount of time that you must continue to be bankrupt, but, this 3
year period may in fact be reduced to just 12 months. So if you are inquiring
about Bankruptcy, this news may be somewhat 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 updates 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 important
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 issue about
this Bankruptcy issue in Lismore that some come up with is that this change
will only motivate fraudulent behavior opening pandora's box so to speak 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
performed in an unethical or fraudulent way, and there are no recommendations
to change the effects of misrepresenting yourself or financial situation when
filing for bankruptcy in Australia.
As an insolvency
professional in Lismore, I have a fair share of experience when it concerns Bankruptcy.
And having dealt with thousands of bankruptcy cases in Lismore 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 tough task
of bankruptcy, not once have I really felt they are happy about it. The normal
small business owner or entrepreneur in Lismore 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 proposed
changes will be good for often the best and brightest in Lismore 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, employers keeping this country going.
Now there is a
fine line with what exactly the government is trying to do here, since they are
trying to balance helping people who have made decisions out of their control,
and dissuading people from making problems that land them in trouble and
consequently an issue of Bankruptcy. However you also don't want to eliminate
the experience and knowledge that business owners have. You certainly don't
want to shatter people simply because they have had a sincere failure in a
large or small start-up venture that has not worked out.
At the major 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 minimized because directors are troubled they'll be personally
responsible in an insolvency arrangement if the new endeavor doesn't work out.
The government's
proposed 'safe haven' changes for directors of companies will allow Australia
to more fully explore and innovate, which will make big changes for Bankruptcy.
I can not imagine, that these adjustments will be detrimental 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 enormous. When it comes to Bankruptcy in Lismore 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 really need some help with your
debts in Lismore or are just thinking of Bankruptcy, feel free to contact us
here at Bankruptcy Experts Lismore on 1300 795 575, or visit our website: bankruptcyexpertslismore.com.au
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