Bankruptcy in Rockhampton - Changes to help Small Business and Entrepreneurs

Do you recognize how much Bankruptcy Rockhampton is changing? The Australian Government in late 2015 suggested some innate changes to the Bankruptcy Laws in Australia. One of 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, however, this 3 year period may very well 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 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 alterations to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that guarding 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 discouraged 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 argument around this Bankruptcy issue in Rockhampton that some make is that this change will only encourage fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to abuse of the bankruptcy system. We have looked at 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 performed in an unethical or fraudulent way, and there are no recommendations to change the outcomes of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As an insolvency professional in Rockhampton, I have a decent share of knowledge when it concerns Bankruptcy. And having dealt with thousands of bankruptcy cases in Rockhampton I have never struck someone abusing the system or acting in an immoral way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur suffer through the very complex task of bankruptcy, not once have I perceived they are happy about it. The typical small business owner or entrepreneur in Rockhampton does not start out taking enormous financial risks with the intention to fail. The media really loves citing the apparent wrongdoing 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 Rockhampton not get tossed out of the game financially for financial decisions often out 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 precisely what the government is trying to do here, since they are aiming to balance helping people who have made decisions out of their control, and deterring people from making blunders 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 shatter people simply because they have had a sincere failure in a large or small start-up venture that has not succeeded.

At the major end of town large established companies have long been criticised for their failure to innovate - let’s face it they would be more likely to do so if the risks of insolvency were reduced because directors are troubled they'll be personally liable in an insolvency arrangement if the new project doesn't work out.

The government's suggested 'safe haven' changes for directors of companies will allow Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I cannot imagine, that these modifications will be destructive 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 substantial. When it comes to Bankruptcy in Rockhampton 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 help with your debts in Rockhampton or are just thinking about Bankruptcy, don't hesitate to give us a call here at Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website: bankruptcyexpertsrockhampton.com.au.

Bankruptcy in Rockhampton - does it matter if it is voluntary?

When it comes to Bankruptcy Rockhampton, often people aren't aware that there may be both voluntary, and involuntary bankruptcy - each have different approaches and guidelines.

Involuntary bankruptcy arises when a person you owe money to involves the court to declare you bankrupt. Usually when you get one of these kinds of notices, you have actually 21 days to pay all the debt. If you don't, then the creditor goes back to the court and asks the court to provide a sequestration order that declares you bankrupt. A trustee is assigned, and then you have 14 days to get the documents in and after that you are bankrupt.

You can challenge a bankruptcy notice by going to court immediately after the 21 days have expired and put your case forward, to prevent it going to the next level. Apart from the way you became bankrupt there is in reality no difference between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're managed to in the very same way.

However, when it comes to Bankruptcy for this, the stress, torment and fear that accompanies this method is incredible. If you think you are likely to be made bankrupt by someone, get some help and act on that advice. Generally I've found it's always more effective to know what you can and can't do before you have someone bankrupt you. Once you are bankrupt, it's usually too late.

Voluntary Bankruptcy

Nevertheless, when it comes to Bankruptcy, sometimes there are moments that it is the most ideal option. So you may have to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the same for everybody of course, but ordinarily I find that one way you could work it out is to figure out just how long it will take you to pay each one of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may really help you make that decision, and help you to understand Bankruptcy.

Once, I had an 80 year old pensioner, who spoke to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the level she was paying her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can help you think this through. If you move house and overlook to pay your $30 phone bill for 6 months more, it's very likely the phone company will default your credit file. That default will remain on your file for 5 years, so for $30 you can have your credit file truly damaged for that period of time - and all of this will affect how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is vicious. The punishment doesn't seem to match the crime in my book. So if you actually have defaults on your credit report for 5 years, remember that bankruptcy is on your credit file for a total 7 years then its rubbed out completely.

So if your credit rating is a big issue in trying to decide whether to enter into a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest variation is that with a DA or PIA you repay the money and still have it on your file for 7 years.

Bankruptcy

I have talked about the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the element more people are afraid of when they come to me to go over their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. Compared to countries like the United States, our bankruptcy laws are very reasonable.

I don't claim to know why that is but a few hundred years ago debtors went to prison. Nowadays I suppose the government feels the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which in turn costs the taxpayer anyway.

Bankruptcy wipes all of your debts including ATO debts except for a few things:

·         Centrelink Debts, Court Fines like parking and speeding fines.

·         HECS or Fee Help loans.

·         Money to take care of a car accident if the car was not insured.

There is a lot more that can be said about this and Bankruptcy in general but the objective of this blog was to help you decide between a few readily available options. When getting some advice, remember that there are always possibilities when it relates to Bankruptcy in Rockhampton, so do some legwork, and Good luck!

If you would like to learn more about precisely what to do, where to turn and what questions to ask about Bankruptcy, then feel free to check with Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website: bankruptcyexpertsRockhampton.com.au.