Do you have an idea of just how much Bankruptcy
in Perth is changing? The Australian Government in late 2015 moved for some
innate changes to the Bankruptcy Laws in Australia. 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 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 shifts 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 necessary 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 issue surrounding this Bankruptcy issue
in Perth that some make is that this shift will only strengthen fraudulent
behavior opening pandora's box so to speak for the unscrupulous to defilement
of the bankruptcy system. We have looked into 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 appeared in an unethical or fraudulent
way, and there are no proposals to change the outcomes of misrepresenting
yourself or financial position when filing for bankruptcy in Australia.
As an insolvency professional in Perth, I
have a reasonable share of experience when it comes to Bankruptcy. And having
dealt with countless bankruptcy cases in Perth I have never uncovered someone
abusing the system or acting in a careless way as to exploit the insolvency
laws in Australia. When it comes to Bankruptcy, each week I help a small
business owner or entrepreneur look at the very complicated task of bankruptcy,
not once have I felt they are happy about it. The normal small business owner
or entrepreneur in Perth does not start out taking enormous financial risks
with the intent to fail. The media prefers citing the apparent injustice that
will be rampant if these changes occur, what a joke!
A Win for Small Business.
These recommended changes will be good for
often the very best and brightest in Perth not get rejected 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 certainly is a fine line with what the
government is trying to do here, since they are trying to balance helping
individuals who have made decisions out of their control, and dissuading people
from making miscalculations that land them in trouble and consequently an issue
of Bankruptcy. However you likewise don't want to eliminate the experience and
knowledge that business owners have. You certainly 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 worked out.
At the big end of town large developed
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 scaled
down because directors are distressed they'll be personally liable 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 revisions 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
substantial. When it comes to Bankruptcy in Perth not a day goes by where I
don't find out the tragic stories 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 Perth or are
just considering Bankruptcy, feel free to call us here at Bankruptcy Advice
Perth on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/perth
