Do you appreciate how much Bankruptcy in
Hobart is changing? The Australian Government at the end of 2015 proposed 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. Currently, there
is a minimum amount of time that you must stay bankrupt, but, 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 rather 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 safeguarding family assets was essential because "banks just
terrorise small business and the mental health consequences to society are
enormous".
The problem is Australia's bankruptcy laws
prevented 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 Hobart that some come up with is that this modification will only reinforce
fraudulent behavior opening pandora's box in a manner of speaking for the
unscrupulous to defilement of the bankruptcy system. We have taken a look at
the minimum, but on the other side of the matter, The government is not
suggesting 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 repercussions 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 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 undergo the very tough task of bankruptcy, not
once have I noticed they are happy about it. The typical small business owner
or entrepreneur in Hobart does not start out taking enormous financial risks
with the intent to fail. The media loves citing the apparent injustice 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 most effective and brightest in Hobart 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, employers
keeping this country going.
Truth be told there 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 missteps that land them in trouble and as a
result an issue of Bankruptcy. However you also don't want to eliminate the
experience and knowledge that business owners have. You surely don't want to
shatter people simply because they have had a genuine failure in a large or
small start-up enterprise that has not succeeded.
At the major end of town large organized
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 reduced
because directors are concerned they'll be personally responsible in an
insolvency arrangement if the new venture 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 can not imagine,
that these alterations will be detrimental to Australia's economy, in reality
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 enormous. When it comes to Bankruptcy in Hobart not a day goes by
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 really need some assistance with your debts in Hobart or are
just thinking of Bankruptcy, don't hesitate to give us a call here at
Bankruptcy Experts Hobart on 1300 795 575, or visit our website: www.bankruptcyexpertshobart.com.au
