Do you know how much Bankruptcy in Cairns
is changing? The Australian Government at the end of 2015 urged some advanced
changes to the Bankruptcy Laws in Australia. Among 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 remain bankrupt, but, this 3 year period
may very well be reduced to just 12 months. So if you are inquiring about
Bankruptcy, this news may be considerably 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 alterations 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 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 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 issue surrounding this Bankruptcy issue
in Cairns that some come up with is that this shift will only push fraudulent
behavior opening pandora's box so to speak for the unscrupulous to maltreatment
of the bankruptcy system. We have looked at the minimum, but on the other side
of the matter, The government is not recommending to change the maximum term of
8 years if it deems a bankrupt has behaved in an unethical or fraudulent way,
and there are no suggestions to change the effects of misrepresenting yourself
or financial situation when filing for bankruptcy in Australia.
As a bankruptcy professional in Cairns, I
have a reasonable share of experience when it concerns Bankruptcy. And having
dealt with countless bankruptcy cases in Cairns I have never caught someone
abusing the system or acting in a reckless way as to exploit the bankruptcy
laws in Australia. When it comes to Bankruptcy, every week I help a small
business owner or entrepreneur undergo the very problematic task of bankruptcy,
not once have I felt they are happy about it. The standard small business owner
or entrepreneur in Cairns does not start out taking enormous financial risks
with the intent to fail. The media prefers citing the apparent wrongdoing 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 very best and brightest in Cairns not get rejected of the game
financially for financial decisions often outside of their control. Most small
business owners I help with Bankruptcy, are hardworking, tax paying, managers
keeping this country going.
There is a fine line with what the
government is trying to do here, because they are trying to balance helping
individuals who have made decisions out of their control, and preventing people
from making oversights that land them in trouble and consequently an issue of Bankruptcy.
However you also don't want to eliminate the experience and knowledge that
business owners have. You absolutely 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 worked out.
At the major end of town large developed
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 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 enable Australia to more fully
explore and innovate, which will make big updates for Bankruptcy. I can not
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 industry because the emotional cost of
bankruptcy is enormous. When it comes to Bankruptcy in Cairns not a day goes by
where I don't hear 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 assistance with your debts in Cairns or are
just thinking of Bankruptcy, feel free to contact us here at Bankruptcy Experts
Cairns on 1300 795 575, or visit our website: www.bankruptcyexpertscairns.com.au
