Do you know how much Bankruptcy in
Melbourne is changing? The Australian Government at the end of 2015 moved for
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 remain bankrupt, however, 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 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 adjustments 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
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 argument about this Bankruptcy issue in
Melbourne that some make is that this change will only push fraudulent behavior
opening pandora's box in a manner of speaking for the unscrupulous to misuse of
the bankruptcy system. We have looked at the minimum, but on the other side of
the issue, The government is not proposing 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 repercussions of misrepresenting
yourself or financial situation when filing for bankruptcy in Australia.
As a bankruptcy professional in Melbourne,
I have a fair share of practical experience when it comes to Bankruptcy. And
having dealt with thousands of bankruptcy cases in Melbourne I have never come
across someone abusing the system or acting in a careless way as to exploit the
insolvency laws in Australia. When it comes to Bankruptcy, every week I help a
small business owner or entrepreneur look at the very challenging task of
bankruptcy, not once have I thought they are happy about it. The average small
business owner or entrepreneur in Melbourne 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 most effective and brightest in Melbourne not get tossed out of the
game financially for financial decisions often outside of their control. Most
small business owners I help with Bankruptcy, are hardworking, tax paying,
managers keeping this country going.
There certainly is a fine line with just
what the government is trying to do here, since they are attempting to balance
helping people who have made decisions out of their control, and dissuading
people from making problems that land them in trouble and as a result an issue
of Bankruptcy. However you also don't want to wipe out the experience and
knowledge that business owners have. You definitely don't want to smash people
simply because they have had a sincere failure in a large or small start-up
enterprise that has not panned out.
At the big end of town large 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 lowered
because directors are distressed they'll be personally responsible in an
insolvency arrangement if the new project doesn't work out.
The government's suggested 'safe haven'
modifications for directors of companies will enable Australia to more fully
explore and innovate, which will make big changes for Bankruptcy. I cannot
imagine, that these differences will be harmful to Australia's economy, indeed
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 enormous. When it comes to Bankruptcy in Melbourne not a day goes
by where I don't find out the tragic experiences 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 Melbourne or
are just considering Bankruptcy, don't hesitate to phone us here at Bankruptcy
Experts Melbourne on 1300 795 575, or visit our website: www.bankruptcyexpertsmelbourne.com.au
