Do you have
knowledge of just how much Bankruptcy
in Sydney is changing? The Australian Government at the end of 2015 submitted
some radical changes to the Bankruptcy Laws in Australia. Among 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 remain bankrupt,
but, this 3 year period may in fact be reduced to just 12 months. So if you are
asking about Bankruptcy, this news may be somewhat 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
improvements 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
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 debate
around this Bankruptcy issue in Sydney that some make is that this change will
only invite fraudulent behavior opening pandora's box in a manner of speaking
for the unscrupulous to violation of the bankruptcy system. We have looked 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
appeared 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 Sydney, I have a reasonable share of practical experience when
it comes to Bankruptcy. And having dealt with countless bankruptcy cases in
Sydney I have never come across someone abusing the system or acting in an
irresponsible 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 challenging task of bankruptcy, not once have I felt they are happy
about it. The standard small business owner or entrepreneur in Sydney 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 suggested
changes will be good for often the most effective and brightest in Sydney not
get tossed out of the game financially for financial decisions often outside of
their control. Most small business owners I help with Bankruptcy are
hardworking, tax paying, employers keeping this country going.
There certainly
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 blunders 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 surely don't
want to smash people simply because they have had a genuine failure in a large or
small start-up venture that has not worked out.
At the major end
of town large well established 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 minimized because directors are troubled they'll be
personally accountable in an insolvency arrangement if the new endeavour
doesn't work out.
The government's
suggested '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 variations will be destructive to Australia's
economy, in fact 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 Sydney not a day passes
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 Sydney or are just considering Bankruptcy, don't hesitate to contact
us here at Bankruptcy Advice Sydney on 1300 879 867, or visit our website: WWW.bankruptcy-advice.com.au/sydney.
