Do you understand just how much Bankruptcy
in Adelaide is changing? The Australian Government at the end of 2015 proposed
some underlying 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 remain bankrupt, however, 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 pretty important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 suggested 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 updates to the issue of Bankruptcy
will take 18 months to implement. Mr Carnegie, went on to say in the Financial
Review that safeguarding 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 issue about this Bankruptcy issue in
Adelaide that some come up with is that this revision will only promote
fraudulent behavior opening pandora's box so to speak for the unscrupulous to
abuse of the bankruptcy system. We have looked at the minimum, but on the other
side of the problem, The government is not submitting to change the maximum
term of 8 years if it deems a bankrupt has acted 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 a bankruptcy professional in Adelaide, I
have a fair share of knowledge when it concerns Bankruptcy. And having dealt
with thousands of bankruptcy cases in Adelaide I have never uncovered someone
abusing the system or acting in an immoral way as to exploit the bankruptcy
laws in Australia. When it comes to Bankruptcy, each week I help a small
business owner or entrepreneur undergo the very complicated task of bankruptcy,
not once have I noticed they are happy about it. The typical small business
owner or entrepreneur in Adelaide does not start out taking enormous financial
risks with the intent 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 best and brightest in Adelaide 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, managers
keeping this country going.
Truth be told there is a fine line with
what exactly the government is trying to do here, since they are aiming to
balance helping people who have made decisions out of their control, and
dissuading people from making miscalculations that land them in trouble and
therefore an issue of Bankruptcy. However you likewise don't want to wipe out
the experience and knowledge that business owners have. You surely don't want
to shatter people simply because they have had an honest failure in a large or
small start-up project that has not succeeded.
At the major end of town large well-known
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 lessened
because directors are distressed they'll be personally responsible in an
insolvency arrangement if the new endeavour doesn't work out.
The government's proposed 'safe haven'
changes 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 alterations will be detrimental to Australia's economy, actually
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 extensive. When it comes to Bankruptcy in Adelaide not a day goes by where I
don't hear 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 want some assistance with your debts in Adelaide or are just
thinking about Bankruptcy, don't hesitate to contact us here at Bankruptcy
Advice Adelaide on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Adelaide
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