5th February 2016 - By Charles Bosse
Do you appreciate just how much Bankruptcy
in Brisbane is changing? The Australian Government in late 2015 suggested 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. At
the moment, there is a minimum amount of time that you must stay bankrupt, but,
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 changes to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that shielding 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
prevented 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 controversy about this Bankruptcy issue
in Brisbane that some make is that this change will only push fraudulent
behavior opening pandora's box so to speak for the unscrupulous to defilement
of the bankruptcy system. We have looked at the minimum, but on the other side
of the problem, 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 suggestions to change the outcomes of misrepresenting yourself
or financial position when filing for bankruptcy in Australia.
As an insolvency professional in Brisbane,
I have a decent share of experience when it comes to Bankruptcy. And having
dealt with thousands of bankruptcy cases in Brisbane I have never come across
someone abusing the system or acting in an irresponsible way as to exploit the
insolvency laws in Australia. When it comes to Bankruptcy, each week I help a
small business owner or entrepreneur suffer through the very tough task of
bankruptcy, not once have I felt they are happy about it. The normal small
business owner or entrepreneur in Brisbane does not start out taking enormous
financial risks with the intent to fail. The media prefers citing the apparent
misuse 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 very best and brightest in Brisbane not get tossed out of the game
financially for financial decisions often out of their control. Most small
business owners I help with Bankruptcy, are hardworking, tax paying, companies
keeping this country going.
There certainly is a fine line with just
what the government is trying to do here, because they are attempting to
balance helping individuals 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 likewise don't want to destroy the
experience and knowledge that business owners have. You surely don't want to
shatter people simply because they have had an honest failure in a large or
small start-up venture that has not succeeded.
At the big 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 insolvency were
lessened because directors are distressed they'll be personally responsible in
an insolvency arrangement if the new project 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 updates for Bankruptcy. I cannot imagine,
that these developments will be destructive to Australia's economy, in reality
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 substantial. When it comes to Bankruptcy in Brisbane not a day passes where
I don't hear the tragic experiences 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 assistance with your debts in Brisbane or
are just thinking about Bankruptcy, feel free to call us here at Bankruptcy
Experts Brisbane on 1300 795 575, or visit our website: www.bankruptcyexpertsbrisbane.com.au