Do you have knowledge of just how much Bankruptcy
in Adelaide is changing? The Australian Government at the end of 2015 came up
with some radical 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. Right
now, there is a minimum amount of time that you must stay bankrupt, having said
that, this 3 year period may very well be reduced to just 12 months. So if you
are inquiring 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 improvements to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that giving protection to 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
deterred 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 surrounding this Bankruptcy
issue in Adelaide that some come up with is that this variation will only
support fraudulent behavior opening pandora's box so to speak for the
unscrupulous to misuse of the bankruptcy system. We have looked into the
minimum, but on the other side of the matter, The government is not suggesting to
change the maximum term of 8 years if it deems a bankrupt has operated 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 Adelaide,
I have a fair share of experience when it concerns Bankruptcy. And having dealt
with countless bankruptcy cases in Adelaide I have never come across someone
abusing the system or acting in a careless way as to exploit the bankruptcy
laws in Australia. When it comes to Bankruptcy, each week I help a small
business owner or entrepreneur go through the very problematic task of
bankruptcy, not once have I felt they are happy about it. The ordinary small
business owner or entrepreneur in Adelaide does not start out taking enormous
financial risks with the intent to fail. The media prefers citing the apparent
injustice 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 Adelaide 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.
Now there is a fine line with what the
government is trying to do here, because they are aiming to balance helping
individuals who have made decisions out of their control, and discouraging
people from making blunders that land them in trouble and therefore an issue of
Bankruptcy. However you likewise don't want to get rid of the experience and
knowledge that business owners have. You certainly don't want to shatter people
simply because they have had a genuine failure in a large or small start-up
enterprise that has not panned out.
At the major end of town large well
established 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 bankruptcy were
reduced because directors are concerned they'll be personally responsible 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 can not imagine, that
these developments 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 industry because the emotional cost of bankruptcy is
extensive. When it comes to Bankruptcy in Adelaide not a day goes by where I
don't find out the tragic stories of relationship failures, thoughts of suicide
and the list continues.
Bankruptcy helps save lives, and it could
save yours. If you really need some assistance with your debts in Adelaide or
are just considering Bankruptcy, feel free to call us here at Bankruptcy
Experts Adelaide on 1300 795 575, or visit our website: www.bankruptcyexpertsAdelaide.com.au.
