Bankruptcy in Northern Rivers – Changes that can help Small Business and Entrepreneurs

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Bankruptcy in Northern Rivers – Changes that can help Small Business and Entrepreneurs

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Written 15th March 2016 – By Charles Bosse– If reading this considerably after this date, feel free to review some of our additional blogs to validate the relevant information is still up to date. Do you know just how much Bankruptcy in Northern Rivers is going to be changing? The Australian Government at the end of 2015 produced some radical plans and prospective alterations to the Bankruptcy Laws in Australia, especially when it concerns the duration of bankruptcy. At the moment, there is a minimal quantity of time that you must remain insolvent, having said that, this 3 year period may well be lowered to just 12 months. So if you are considering insolvency, these developments are going to be quite critical to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this area) remarked back in December 2015 in the Financial Review that there was going to be tips for “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”. What complication is he aiming to fix? Presently, the legislations don’t have enough protections, to the extent that Mr Carnegie, proceeded to mention in the Financial Review that providing security to household assets was essential because “banks just terrorise small business and the mental health consequences to society are enormous”. The issue is Australia’s bankruptcy laws prevented investors from supporting start-ups, and therefore mentoring had been “driven out of the system” and too many individuals are too troubled to try and invest or attempt to run a business. “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”. This implies that presently, the present rules are costing the economy and they may work for you, however they can be exploited and sometimes the innocent fall in the gaps and get unfairly penalized. Just what is being proposed? The recommendation is to have the 3 year bankruptcy duration decreased to just 12 months when there is zero indication of fraud or dishonest behaviour. These developments will mean a lot for Bankruptcy and will take approximately 18 months to execute. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a term that covers every one of the bad factors. So when it comes to Bankruptcy, this indicates that it will deal with behaving dishonestly, hiding assets, taking careless risks, behaving unethically or just commonly attempting to con individuals. One proposed strategy is that while they are lowering the time for those individuals behaving truthfully, they could in fact implement a counter proposition to target those behaving especially dishonestly and increase the time. Certainly there are currently some arrangements in position for when you do not follow particular regulations (and I encourage you to learn more about Bankruptcy to make sure you don’t unintentionally break these guidelines) but it will be interesting to see how this develops. So is this a Win for Small Business? Yes, absolutely! This is going to be terrific for business and I really hope that you are reading these alterations to Bankruptcy and are getting as excited as I am. These proposed modifications will benefit businesses because it can motivate more people to get engaged and take estimated risks– There will still be penalties in place, but it won’t be unfairly punishing those who make genuinely honest mistakes. Most business owners I assist with Bankruptcy, are hardworking, tax paying, companies that are keeping this nation going and so I am excited to observe what will be taking place next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it could possibly save yours. If you really need some support with your financial obligations in Northern Rivers or are just thinking about Bankruptcy, don’t hesitate to contact us here at Bankruptcy Experts Northern Rovers on 1300 795 575, or visit our website: Bankruptcy Northernrivers

By | 2018-08-01T02:04:17+00:00 October 14th, 2016|Bankrupt, Blog|0 Comments

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