Do you appreciate how much Bankruptcy in
Hobart is changing? The Australian Government in late 2015 put forward some
inherent changes to the Bankruptcy Laws in Australia. 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 continue to be bankrupt, having said that,
this 3 year period may in fact be reduced down to just 12 months. So if you are
inquiring about Bankruptcy, this news may be fairly important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 proposed 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 debate surrounding this Bankruptcy
issue in Hobart that some make is that this change will only support fraudulent
behavior opening pandora's box so to speak for the unscrupulous to abuse of the
bankruptcy system. We have considered the minimum, but on the other side of the
matter, The government is not proposing to change the maximum term of 8 years
if it deems a bankrupt has represented oneself in an unethical or fraudulent
way, and there are no recommendations to change the consequences of
misrepresenting yourself or financial situation when filing for bankruptcy in
Australia.
As an insolvency professional in Hobart, I
have a reasonable share of knowledge when it comes to Bankruptcy. And having
dealt with thousands of bankruptcy cases in Hobart I have never caught someone
abusing the system or acting in an unaccountable way as to exploit the insolvency
laws in Australia. When it comes to Bankruptcy, every week I help a small
business owner or entrepreneur undergo the very hard task of bankruptcy, not
once have I felt they are happy about it. The normal small business owner or
entrepreneur in Hobart 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 best and brightest in Hobart not get kicked 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, employers
keeping this country going.
There really is a fine line with just what
the government is trying to do here, because they are trying to balance helping
people who have made decisions out of their control, and discouraging people
from making errors that land them in trouble and therefore an issue of Bankruptcy.
However you likewise don't want to kill 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 project that has not
gone well.
At the major 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 bankruptcy were
decreased because directors are distressed they'll be personally liable in an
insolvency arrangement if the new endeavor doesn't work out.
The government's proposed 'safe haven'
modifications for directors of companies will allow Australia to more fully
explore and innovate, which will make big updates for Bankruptcy. I can not
imagine, that these adjustments will be harmful to Australia's economy, in fact
these bankruptcy laws will save the tax payer in all areas of health -
Especially in the mental health sector because the emotional cost of bankruptcy
is substantial. When it comes to Bankruptcy in Hobart not a day passes where I
don't find out 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 are in need of some help with your debts in Hobart or are
just thinking about Bankruptcy, feel free to phone us here at Bankruptcy Advice
Hobart on 1300 879 867, or visit our website: bankruptcy-advice.com.au/hobart
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