Do you have an idea of just how much Going Bankrupt in Alice Springs is changing? The Australian Government at the end of 2015 set forth some progressive 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 this time, there is a minimum amount of time that you must remain bankrupt, having said that, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be quite 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 changes to the issue of Going Bankrupt will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that shielding 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 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.”.
The controversy about this Going Bankrupt issue in Alice Springs that some come up with is that this shift will only push fraudulent behavior opening pandora’s box in a manner of speaking for the unscrupulous to misuse of the bankruptcy system. We have looked at the minimum, but on the other side of the issue, 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 proposals to change the outcomes of misrepresenting yourself or financial position when filing for bankruptcy in Australia.
As a bankruptcy professional in Alice Springs, I have a fair share of knowledge when it comes to Going Bankrupt. And having dealt with thousands of bankruptcy cases in Alice Springs I have never come across someone abusing the system or acting in an immoral way as to exploit the insolvency laws in Australia. When it comes to Going Bankrupt, every week I help a small business owner or entrepreneur suffer through the very formidable task of bankruptcy, not once have I thought they are happy about it. The normal small business owner or entrepreneur in Alice Springs does not start out taking enormous financial risks with the intention to fail. The media loves citing the apparent misuse 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 best and brightest in Alice Springs not get tossed out of the game financially for financial decisions often outside of their control. Most small business owners I help with Going Bankrupt, are hardworking, tax paying, companies keeping this country going.
There really is a fine line with exactly what the government is trying to do here, because they are aiming to balance helping people who have made decisions out of their control, and preventing people from making errors that land them in trouble and as a result an issue of Going Bankrupt. However you also don’t want to get rid of the experience and knowledge that business owners have. You absolutely don’t want to smash people simply because they have had an honest failure in a large or small start-up enterprise that has not panned out.
At the big end of town large well-known 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 lowered because directors are worried they’ll be personally responsible 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 updates for Going Bankrupt. I cannot imagine, that these revisions will be detrimental to Australia’s economy, indeed 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 extensive. When it comes to Going Bankrupt in Alice Springs 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.
Going Bankrupt helps save lives, and it could save yours. If you need some assistance with your debts in Alice Springs or are just thinking about Going Bankrupt, don’t hesitate to phone us here at Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website: http://www.bankruptcyexpertsalicesprings.com.au