Do you recognize
just how much Bankruptcy in Hobart
is changing? The Australian Government at the end of 2015 came up with some
innate 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 stay 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 Bankruptcy will take 18 months to implement. Mr Carnegie, went on
to say in the Financial Review that shielding 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
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."
Fraudulent Behavior
The debate
surrounding this Bankruptcy issue in Hobart that some make is that this
variation will only encourage fraudulent behavior opening pandora's box so to
speak for the unscrupulous to violation of the bankruptcy system. We have taken
a look 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
appeared in an unethical or fraudulent way, and there are no recommendations to
change the effects of misrepresenting yourself or financial situation when
filing for bankruptcy in Australia.
As an insolvency
professional in Hobart, I have a reasonable share of knowledge when it concerns
Bankruptcy. And having dealt with thousands of bankruptcy cases in Hobart I
have never struck someone abusing the system or acting in an irresponsible way
as to exploit the insolvency laws in Australia. When it comes to Bankruptcy,
each week I help a small business owner or entrepreneur suffer through the very
challenging task of bankruptcy, not once have I felt they are happy about it.
The normal small business owner or entrepreneur in Hobart does not start out
taking enormous financial risks with the intent to fail. The media prefers
citing the apparent injustice 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 best and brightest in Hobart not get tossed
out 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.
Now there is a
fine line with the things 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 miscalculations that land them in
trouble and as a result an issue of Bankruptcy. However you also don't want to
get rid of the experience and knowledge that business owners have. You surely
don't want to shatter people simply because they have had a genuine failure in
a large or small start-up project that has not succeeded.
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
insolvency were cut down because directors are concerned they'll be personally
responsible in an insolvency arrangement if the new project doesn't work out.
The government's
proposed '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 alterations 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 field because the emotional cost of
bankruptcy is enormous. When it comes to Bankruptcy in Hobart not a day passes
where I don't hear the tragic experiences of relationship failures, thoughts of
suicide and the list continues.
Bankruptcy helps
save lives, and it could save yours. If you need some help with your debts in Hobart
or are just thinking of Bankruptcy, don't hesitate to contact us here at Fresh
Start Solutions Hobart on 1300 818 575, or visit our website: WWW.freshstartsolutions.com.au/bankruptcy-hobart
