Do you
appreciate how much Bankruptcy Adelaide is changing? The Australian
Government at the end of 2015 put forward some progressive changes to the
Bankruptcy Laws in Australia. The most significant of these is the length of
time that a person is bankrupt for. At this time, there is a minimum amount of
time that you must stay bankrupt, having said that, 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 proposed 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 defending 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
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 Adelaide that some make is that this change
will only invite fraudulent behavior opening pandora's box so to speak for the
unscrupulous to maltreatment of the bankruptcy system. We have taken a look at
the minimum, but on the other side of the issue, The government is not
suggesting 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 propositions to
change the repercussions of misrepresenting yourself or financial situation
when filing for bankruptcy in Australia.
As a bankruptcy
professional in Adelaide, I have a decent share of experience when it comes to Bankruptcy.
And having dealt with countless bankruptcy cases in Adelaide I have never
uncovered someone abusing the system or acting in a reckless way as to exploit
the insolvency laws in Australia. When it comes to Bankruptcy, every week I
help a small business owner or entrepreneur go through the very tough task of
bankruptcy, not once have I felt they are happy about it. The average small
business owner or entrepreneur in Adelaide does not start out taking enormous
financial risks with the intention to fail. The media 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 out of their
control. Most small business owners I help with Bankruptcy, are hardworking,
tax paying, employers keeping this country going.
There is a fine
line with the things the government is trying to do here, since they are
attempting to balance helping individuals who have made decisions out of their
control, and dissuading people from making errors that land them in trouble and
therefore an issue of Bankruptcy. However you also don't want to kill the
experience and knowledge that business owners have. You certainly don't want to
shatter people simply because they have had an honest failure in a large or
small start-up venture that has not panned out.
At the major end
of town large reputable 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 reduced because directors are troubled they'll be personally
accountable in an insolvency arrangement if the new venture doesn't work out.
The government's
suggested 'safe haven' modifications for directors of companies will allow
Australia to more fully explore and innovate, which will make big changes for Bankruptcy.
I cannot imagine, that these changes will be harmful 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 Adelaide not a day goes by where
I don't find out the tragic stories of relationship failures, thoughts of
suicide and the list continues.
Bankruptcy helps
save lives, and it could save yours. If you want some help with your debts in
Adelaide or are just thinking about Bankruptcy, don't hesitate to call us here
at Fresh Start Solutions Adelaide on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-adelaide
