Bankruptcy in Toowoomba – Changes that can help Small Business and Entrepreneurs.
10
October
2016

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Written 15th March 2016 – By Charles Bosse– If reading this considerably after this time, please read through some of our other blog posts to validate the data is still up to date. Do you know just how much Bankruptcy in Toowoomba is going to be changing? The Australian Government by the end of 2015 came up with some radical plans and possible changes to the Bankruptcy Laws in Australia, specifically when it relates to the duration of personal bankruptcy. Right now, there is a minimum quantity 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 considering going bankrupt, these developments are going to be relatively critical to you! How did this all happen? Well, Mark Carnegie (an expert in this area) reviewed 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 trouble is he aiming to repair? At the moment, the laws don’t have sufficient protections, to the level that Mr Carnegie, went on to mention in the Financial Review that offering protection to family assets was necessary because “banks just terrorise small business and the mental health consequences to society are enormous”. The trouble is Australia’s bankruptcy laws discouraged investors from supporting start-ups, and for that reason mentoring had been “driven out of the system” and several individuals are too worried 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 implies that right now, the existing rules are costing the economy and they may benefit you, but they can be exploited and sometimes the innocent fall in the voids and get unfairly penalized. What is being proposed? The recommendation is to get the 3 year bankruptcy period minimized to just 12 months when there is zero indication of fraud 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 essentially a term that addresses all the negative things. So when it involves Bankruptcy, this means that it will address behaving dishonestly, concealing assets, taking negligent risks, acting unethically or just generally attempting to con individuals. One proposed recommendation is that while they are minimizing the amount of time for those acting honestly, they may actually implement a counter proposal to target those acting especially dishonestly and raise the time. There are already some provisions in place for whenever you do not observe particular regulations (and I encourage you to read more about Bankruptcy to make sure you don’t accidentally break these guidelines) but it will be interesting to observe exactly how this develops. So is this a Win for Small Business? Yes, most definitely! This is going to be great for business and I really hope that you are reading these modifications to Bankruptcy and are getting as delighted as I am. These suggested changes will be good for local businesses because it will motivate additional individuals to get engaged and take estimated risks– There will however be consequences in place, but it will not be unfairly reprimanding those who make truly honest mistakes. Most business owners I help with Bankruptcy, are hardworking, tax paying, businesses that are trying to keep this country going and so I am thrilled to observe what will be occurring next with this, and how it will impact Bankruptcy. Bankruptcy helps save lives, and it could possibly save yours. If you really require some support with your financial debts in Toowoomba or are just considering Bankruptcy, don’t hesitate to call us here at Bankruptcy Experts Toowoomba on 1300 795 575, or visit our website: www.bankruptcyexpertstoowoomba.com.au

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