Bankruptcy in Lismore - Changes to aid Small Business and Entrepreneurs

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

Bankruptcy in Lismore - does it matter if it is voluntary?

When it comes to Bankruptcy Lismore, commonly people aren't aware that there are both voluntary, and involuntary bankruptcy - both have distinct methods and guidelines.

Involuntary bankruptcy occurs when somebody you owe money to involves the court to declare you bankrupt. Commonly when you get one of these particular notices, you have actually 21 days to pay all the debt. If you don't, then the creditor returns to the court and asks the court to provide a sequestration order that declares you bankrupt. A trustee is assigned, and then you have 14 days to get the paperwork in and after that you are bankrupt.

You can contest a bankruptcy notice by going to court right after the 21 days have expired and put your case forward, to stop it going to the next level. Other than the way you became bankrupt there is in reality no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're overseen to in the same way.

However, when it comes to Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this process is incredible. If you think you are more than likely to be made bankrupt by someone, get some help and act on that advice. Generally I've found it's always more ideal to know what you can and can't do before you have somebody bankrupt you. Once you are bankrupt, it's normally too late.

Voluntary Bankruptcy

However, when it comes to Bankruptcy, sometimes there are times that it is the best option. So you may need to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the very same for everybody of course, but usually I find that one way you could work it out is to figure out just how long it will take you to pay each one of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may assist you make that decision, and help you to understand Bankruptcy.

Once, I had an 80 year old pensioner, who came to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the level she was paying off her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can help you think this through. If you move house and forget to pay your $30 phone bill for 6 months more, it's very likely the telephone company will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file very seriously damaged for that period of time - and all of this will affect how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unethical. The punishment doesn't seem to amount to the crime in my book. So if you currently have defaults on your credit report for 5 years, remember that bankruptcy is on your credit file for a total 7 years then its wiped off completely.

So if your credit rating is a big factor in trying to decide whether to enter into a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest contrast is that with a DA or PIA you pay back the money and nevertheless have it on your file for 7 years.

Bankruptcy

I have talked about the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the element most people are afraid of when they come to me to review their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. Compared with countries like the United States, our bankruptcy laws are extremely good.

I don't claim to know why that is but a few hundred years ago debtors went to prison. Nowadays I suppose the government assumes the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which costs the taxpayer anyway.

Bankruptcy wipes every one of your debts including ATO debts except for a few things:

·         Centrelink Debts, Court Fines like parking and speeding fines.

·         HECS or Fee Help loans.

·         Money to take care of a car accident if the car was not insured.

There is a lot more that can be said about doing this and Bankruptcy in general but the objective of this blog was to help you decide between a few available options. When getting some advice, remember that there are always possibilities when it concerns Bankruptcy in Lismore, so do some research, and Good luck!

If you want to find out more about just what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to talk to Bankruptcy Experts Lismore on 1300 795 575, or visit our website:.bankruptcyexpertsLismore.com.au.