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.