Bankruptcy in Geelong – Changes that can help Small Business and Entrepreneurs.
Written 15th March 2016 – By Charles Bosse– If reading this significantly after this date, feel free to go through some of our various blog posts to validate the details is still up to date. Do you realise just how much Bankruptcy in Geelong is going to be changing? The Australian Government at the end of 2015 formulated some radical plans and prospective alterations to the Bankruptcy Laws in Australia, particularly when it comes to the length of insolvency. At the moment, there is a minimum quantity of time that you must stay bankrupt, having said that, this 3 year duration may effectively be lowered to just 12 months. So if you are looking at insolvency, these developments are going to be rather important to you! How did this all come to be? Well, Mark Carnegie (an expert in this area) reviewed 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 trouble is he attempting to resolve? Presently, the laws don’t have adequate protections, to the level that Mr Carnegie, continued to say in the Financial Review that giving safeguards to household assets was needed 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 assisting start-ups, and for that reason mentoring had been “driven out of the system” and several people are too troubled to try and invest or try 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”. That indicates that right now, the existing rules are costing the overall economy and they may benefit you, but they can be exploited and occasionally the innocent fall in the voids and get unjustly penalized. What is being proposed? The proposition is to get the 3 year bankruptcy duration reduced to just 12 months when there is zero indication of fraudulence or unethical behaviour. These developments will mean a lot for Bankruptcy and will likely take at least 18 months to execute. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a term that covers every one of the bad factors. So when it concerns Bankruptcy, this indicates that it will cover behaving dishonestly, concealing assets, taking reckless risks, acting unethically or just commonly attempting to con others. One proposed concept is that although they are decreasing the time for individuals acting honestly, they could in fact carry out a counter proposal to pinpoint those acting significantly dishonestly and increase the time. Certainly there are currently some arrangements in effect for when you do not follow certain regulations (and I recommend you to learn more about Bankruptcy to make sure you don’t inadvertently break these guidelines) but it will be interesting to observe exactly how this develops. So is this a Win for Small Business? Yes, definitely! This is going to be terrific for business and I really hope that you are reading these alterations to Bankruptcy and are getting as delighted as I am. These proposed modifications will benefit small businesses because it can encourage additional people to get involved and take estimated risks– There will however be consequences in effect, but it won’t be unfairly reprimanding individuals who make genuinely honest miscalculations. Many small business owners I help with Bankruptcy, are hardworking, tax paying, businesses that are keeping this nation going and so I am delighted to observe what will be happening next with this, and just how it will impact Bankruptcy. Bankruptcy helps save lives, and it could possibly save yours. If you really require some assistance with your financial debts in Geelong or are just considering Bankruptcy, feel free to phone us here at Bankruptcy Experts Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsgeelong.com.au