5th February 2016 - By Charles Bosse
Do you have knowledge of how much Bankruptcy
in Perth is changing? The Australian Government in late 2015 proposed 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. Now,
there is a minimum amount of time that you must stay 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 pretty important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 suggested 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 modifications 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 very important because "banks
just terrorise small business and the mental health consequences to society are
enormous".
The problem is Australia's bankruptcy laws
put off 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 controversy about this Bankruptcy issue
in Perth that some make is that this variation will only encourage 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 problem, The government is not proposing 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 recommendations to change the outcomes of misrepresenting
yourself or financial position when filing for bankruptcy in Australia.
As a bankruptcy professional in Perth, I
have a decent share of experience when it concerns Bankruptcy. And having dealt
with countless bankruptcy cases in Perth I have never uncovered someone abusing
the system or acting in a reckless way as to exploit the bankruptcy laws in
Australia. When it comes to Bankruptcy, every week I help a small business
owner or entrepreneur look at the very difficult task of bankruptcy, not once
have I sensed they are happy about it. The average small business owner or
entrepreneur in Perth does not start out taking enormous financial risks with
the intention to fail. The media prefers citing the apparent abuse that will be
rampant if these changes occur, what a joke!
A Win for Small Business.
These suggested changes will be good for
often the most effective and brightest in Perth not get rejected of the game
financially for financial decisions often out of their control. Most small
business owners I help with Bankruptcy, are hardworking, tax paying, managers
keeping this country going.
There really is a fine line with the things
the government is trying to do here, since they are aiming to balance helping
people who have made decisions out of their control, and preventing people from
making missteps that land them in trouble and consequently an issue of Bankruptcy.
However you likewise don't want to destroy the experience and knowledge that
business owners have. You undoubtedly 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 worked out.
At the major 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 bankruptcy were scaled
down because directors are distressed they'll be personally accountable 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 cannot imagine,
that these alterations will be detrimental to Australia's economy, actually
these bankruptcy laws will save the tax payer in all areas of health -
Especially in the mental health field because the emotional cost of bankruptcy
is enormous. When it comes to Bankruptcy in Perth not a day goes by where I
don't hear the tragic experiences of relationship failures, thoughts of suicide
and the list continues.
Bankruptcy helps save lives, and it could
save yours. If you want some help with your debts in Perth or are just
considering Bankruptcy, feel free to phone us here at Fresh Start Solutions
Perth on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-perth
