Bankruptcy in Wollongong – Changes that can help Small Business and Entrepreneurs.
Written 15th March 2016 – By Charles Bosse– If checking this out greatly after this date, please read through some of our various blog posts to confirm the relevant information is still up to date. Do you realise just how much Bankruptcy in Wollongong is going to be changing? The Australian Government at the end of 2015 formulated some radical plans and potential modifications to the Bankruptcy Laws in Australia, especially when it comes to the length of bankruptcy. At this time, there is a minimum quantity of time that you must remain bankrupt, having said that, this 3 year duration may well be reduced to just 12 months. So if you are looking into going bankrupt, these alterations are going to be rather important to you! Exactly how did this all happen? Well, Mark Carnegie (an expert in this field) remarked back in December 2015 in the Financial Review that there was going to be suggestions for “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”. What issue is he attempting to repair? Currently, the laws don’t have sufficient protections, to the extent that Mr Carnegie, proceeded to mention in the Financial Review that providing protection to household assets was required 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 for that reason mentoring had been “driven out of the system” and several individuals are too anxious to try and invest or attempt to run a small business. “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”. This suggests that right now, the current legislations are costing the economy and they may work with you, but they can possibly be exploited and sometimes the innocent fall in the voids and get unfairly penalized. What is being proposed? The recommendation is to get the 3 year bankruptcy period reduced to just 12 months when there is no sign of fraudulence or unethical practices. These improvements will mean a lot for Bankruptcy and will take approximately 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is basically a term that covers all of the bad factors. So when it comes to Bankruptcy, this means that it will address acting dishonestly, hiding assets, taking negligent risks, acting unethically or just generally trying to scam individuals. One proposed recommendation is that whilst they are decreasing the time for people behaving truthfully, they could in fact implement a counter proposal to pinpoint those behaving particularly dishonestly and increase the time. There are already some arrangements in effect for whenever you do not observe particular regulations (and I encourage you to find out more about Bankruptcy to make sure you don’t accidentally break these rules) but it will be interesting to observe how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be great for small business and I really hope that you read these alterations to Bankruptcy and are getting as thrilled as I am. These proposed changes will benefit small businesses because it will urge additional people to get engaged and take estimated risks– There will nonetheless be penalties in effect, but it won’t be unfairly punishing people who make genuinely honest miscalculations. Most small business owners I assist with Bankruptcy, are hardworking, tax paying, businesses that are helping keep this nation going and so I am delighted to observe what will be taking place next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it could possibly save yours. If you really need some support with your financial debts in Wollongong or are just considering Bankruptcy, feel free to call us here at Bankruptcy Experts Wollongong on 1300 795 575, or visit our website: www.bankruptcyexpertswollongong.com.au