Bankruptcy in Maitland – Changes that can help Small Business and Entrepreneurs.

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Bankruptcy in Maitland – Changes that can help Small Business and Entrepreneurs.

Written 15th March 2016 – By Charles Bosse– If checking this out greatly after this time, feel free to check out a few of our additional blogs to confirm the data is still up to date. Do you realise just how much Bankruptcy in Maitland is going to be changing? The Australian Government at the end of 2015 produced some radical plans and prospective changes to the Bankruptcy Laws in Australia, specifically when it concerns the duration of personal bankruptcy. At this time, there is a minimal amount of time that you must remain bankrupt, having said that, this 3 year period may well be lowered to just 12 months. So if you are looking into going bankrupt, these alterations are going to be relatively critical to you! How did this all come to be? Well, Mark Carnegie (an expert in this field) 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? At the moment, the laws don’t have enough protections, to the extent that Mr Carnegie, went on to point out in the Financial Review that providing safeguards to household assets was needed since “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” and lots of people are too troubled to try and invest or try to run a small 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”. That means that right now, the existing rules are costing the economy and they may benefit you, however they can possibly be manipulated and in some cases the innocent fall within the voids and get unjustly punished. Just what is being proposed? The proposal is to get the 3 year bankruptcy period minimized to just 12 months when there is zero sign of fraudulence or unethical practices. These developments will mean a lot for Bankruptcy and will likely take approximately 18 months to apply. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a term that includes every one of the bad factors. So when it involves Bankruptcy, this indicates that it will deal with behaving dishonestly, hiding assets, taking reckless risks, behaving unethically or just generally attempting to con others. One proposed idea is that whilst they are reducing the amount of time for people acting truthfully, they may in fact execute a counter proposition to target those acting especially dishonestly and raise the time. There are already some arrangements in effect for when you do not follow certain rules (and I encourage you to find out more about Bankruptcy to make sure you don’t inadvertently break these guidelines) but it will be interesting to see exactly how this develops. So is this a Win for Small Business? Yes, definitely! This is going to be terrific for small business and I hope that you read these alterations to Bankruptcy and are getting as delighted as I am. These proposed changes will be good for small businesses because it will encourage additional individuals to get engaged and take estimated risks– There will still be penalties in effect, but it won’t be unfairly punishing those who make truly honest miscalculations. Many business owners I help with Bankruptcy, are hardworking, tax paying, companies that are keeping this country going and so I am excited to observe what will be taking place next with this, and how it will impact Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really need some support with your financial obligations in Maitland or are just considering Bankruptcy, do not hesitate to contact us here at Bankruptcy Experts Maitland on 1300 795 575, or visit our website: www.bankruptcyexpertsmaitland.com.au

By | 2018-07-05T00:29:32+00:00 October 14th, 2016|Bankrupt, blog|0 Comments

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