Bankruptcy in Port Macquarie – Changes that can help Small Business and Entrepreneurs.

office-computer-night-536907925-hero-images-getty-compressor

Written 15th March 2016 – By Charles Bosse– If checking this out greatly after this date, feel free to go through some of our additional blog posts to verify the information is still up to date. Do you know just how much Bankruptcy in Port Macquarie is likely to be changing? The Australian Government by the end of 2015 formulated some radical proposals and possible alterations to the Bankruptcy Laws in Australia, especially when it involves the duration of bankruptcy. Right now, there is a minimum quantity of time that you will need to stay insolvent, having said that, this 3 year duration may effectively be lowered to just 12 months. So if you are considering bankruptcy, these changes are going to be rather significant to you! 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 tips 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 fix? Presently, the legislations don’t have sufficient protections, to the extent that Mr Carnegie, continued to mention in the Financial Review that giving security to family assets was necessary since “banks just terrorise small business and the mental health consequences to society are enormous”. The problem is Australia’s bankruptcy laws prevented financiers from assisting start-ups, and for that reason mentoring had been “driven out of the system” and too many individuals are too anxious to try and invest or try to run a 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 suggests that currently, the present legislations are costing the overall economy and they may work for you, but they could be manipulated and in some cases the innocent fall in the voids and get unjustly penalized. What is being proposed? The recommendation is to have the 3 year bankruptcy time period minimized to just 12 months when there is zero indication of fraudulence or dishonest practices. These developments will signify a lot for Bankruptcy and will take at least 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a term that covers all the negative points. So when it concerns Bankruptcy, this indicates that it will address acting dishonestly, hiding assets, taking careless risks, acting unethically or just generally trying to scam others. One proposed idea is that although they are minimizing the time for people behaving honestly, they may in fact carry out a counter proposal to pinpoint those acting especially dishonestly and maximize the time. There are already some regulations in place for whenever you do not observe particular regulations (and I encourage you to learn more about Bankruptcy to make sure you don’t accidentally break these guidelines) but it will be interesting to observe exactly how this evolves. So is this a Win for Small Business? Yes, absolutely! This is going to be excellent for small business and I really hope that you are reading these alterations to Bankruptcy and are getting as delighted as I am. These suggested changes will benefit businesses because it can urge more individuals to get involved and take estimated risks– There will still be penalties in effect, but it won’t be unfairly reprimanding people who make genuinely honest mistakes. Many small business owners I help with Bankruptcy, are hardworking, tax paying, companies that are helping keep this nation going and so I am excited to observe what will be happening next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really require some assistance with your debts in Port Macquarie or are just considering Bankruptcy, do not hesitate to call us here at Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website: www.bankruptcyexpertsportmacquarie.com.au

By | 2016-10-14T02:35:01+00:00 October 14th, 2016|Bankrupt, blog|0 Comments

About the Author: