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

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Written 15th March 2016 – By Charles Bosse– If reading this greatly after this date, please check out some of our other blogs to confirm the details is still up to date. Do you know just how much Bankruptcy in Gold Coast is going to be changing? The Australian Government at the end of 2015 developed some extreme plans and possible modifications to the Bankruptcy Laws in Australia, specifically when it concerns the length of personal bankruptcy. At the moment, there is a minimum amount of time that you need to remain insolvent, having said that, this 3 year period may very well be decreased to just 12 months. So if you are considering going bankrupt, these alterations are going to be rather critical to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this field) reviewed back in December 2015 in the Financial Review that there was going to be suggestions 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 issue is he aiming to resolve? At the moment, the legislations don’t have adequate protections, to the level that Mr Carnegie, went on to point out in the Financial Review that giving protection to household assets was required because “banks just terrorise small business and the mental health consequences to society are enormous”. The trouble is Australia’s bankruptcy laws prevented investors from assisting start-ups, and therefore mentoring had been “driven out of the system” and lots of people are too worried to try and invest or try 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 currently, the present laws are costing the economy and they may work for you, however they can be exploited and in some cases the innocent fall within the gaps and get unfairly penalized. Just what is being proposed? The proposal is to have the 3 year bankruptcy duration minimized to just 12 months when there is zero indication of fraudulence or unethical behaviour. These improvements will signify a lot for Bankruptcy and will likely take at least 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is basically a phrase that addresses every one of the bad points. So when it comes to Bankruptcy, this means that it will deal with acting dishonestly, concealing assets, taking negligent risks, acting unethically or just commonly trying to scam individuals. One proposed strategy is that while they are lowering the time for those behaving truthfully, they may actually implement a counter proposition to pinpoint those acting significantly dishonestly and increase the amount of time. There are already some regulations in effect for when you do not follow certain regulations (and I recommend you to learn more about Bankruptcy to make sure you don’t inadvertently break these rules) but it will be interesting to see exactly how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be great for business and I hope that you are reading these modifications to Bankruptcy and are getting as excited as I am. These suggested changes will be good for local businesses because it will motivate more people to get involved and take estimated risks– There will still be penalties in effect, but it won’t be unfairly penalizing individuals who make genuinely honest miscalculations. Most business owners I assist with Bankruptcy, are hardworking, tax paying, businesses that are helping keep this nation going and so I am thrilled to see what will be taking place next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really require some support with your financial obligations in Gold Coast or are just considering Bankruptcy, feel free to contact us here at Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsgoldcoast.com.au

By | 2016-10-14T01:36:04+00:00 October 14th, 2016|Article, bankruptcy, Blog|0 Comments

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