Bankruptcy in Australia - Changes that help Small Business and Entrepreneurs

 Do you have an idea of how much Bankruptcy Australia is changing? The Australian Government at the end of 2015 put forward some innate changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. At the moment, there is a minimum amount of time that you must continue to be bankrupt, but, this 3 year period may in fact be reduced down to just 12 months. So if you are asking about Bankruptcy, this news may be somewhat important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 recommended 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 defending family assets was very important 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 as a result 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 controversy surrounding this Bankruptcy issue in Australia that some come up with is that this variation will only reinforce fraudulent behavior opening pandora's box so to speak for the unscrupulous to exploitation 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 behaved in an unethical or fraudulent way, and there are no proposals to change the implications of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Australia, I have a fair share of knowledge when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Australia I have never caught someone abusing the system or acting in a reckless 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 hard task of bankruptcy, not once have I really felt they are happy about it. The normal small business owner or entrepreneur in Australia does not start out taking enormous financial risks with the intention 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 most effective and brightest in Australia not get rejected of the game financially for financial decisions often out of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, companies keeping this country going.

There really 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 blunders that land them in trouble and consequently an issue of Bankruptcy. However you likewise don't want to destroy the experience and knowledge that business owners have. You undoubtedly don't want to shatter people simply because they have had a sincere failure in a large or small start-up project that has not gone well.

At the major end of town large established 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 bankruptcy were minimized because directors are troubled they'll be personally liable in an insolvency arrangement if the new endeavor 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 can not imagine, that these refinements will be harmful to Australia's economy, indeed these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health sector because the emotional cost of bankruptcy is extensive. When it comes to Bankruptcy in Australia not a day goes by where I don't find out the tragic stories of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you want some help with your debts in Australia or are just thinking of Bankruptcy, feel free to contact us here at Bankruptcy Advice on 1300 795 575, or visit our website:bankruptcy-advice.com.au

Bankruptcy in Australia - Are you going to get bitten?

When people in Australia ask me about Bankruptcy, I let them know the timeless Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to view one last sunset before he dies. The boy was hesitant, but the rattlesnake vowed not to bite him in exchange for the ride. They travelled together only for the snake to in the end bite the boy despite his assurance not to do so. The snake's reply was 'You knew what I was when you picked me up.

Acquiring the right financial advice in Australia when it pertains to Bankruptcy is a great deal like that little boy's experience, fraught with risk and danger, and normally skewed for the benefit of the person giving the advice. Often you'll get bitten unless you know what you've picked up before you move forward (avoid the rattlesnakes). I learned the problem with obtaining financial advice as a teenager, and it has been fundamental to Bankruptcy. I'd been keeping my nose to the grindstone for a few years, and saved up a small amount of money I wanted to invest. It was the early 1980s so interest rates were fairly high and investing your money was rather profitable. I spent a long time researching diverse investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had great suits and plush offices, they all seemed to exude confidence and have all the answers. What struck me was that they all had a very different idea of what I should do. This frustrated me so much that it put me off the entire idea of picking any of them.

I'm sure currently you have read enough on the internet to be totally puzzled about Bankruptcy and just what to do. It would most likely be easier for me to help you understand the nature of the financial snakes you could be grabbing while you are attempting to get to the bottom of your financial issues in Australia. Basically, you need to try and figure out what your overarching alternatives are, do your very own research into where to proceed with your plan for Bankruptcy, and then approach the things you feel is best in Australia for your requirements. Essentially, you have 3 options for who to turn to.

The first option is a Solicitor - This may feel like the go-to solution when you appear to be in trouble. But generally there is only just so much support they can give on this matter. There are certainly specialist legal advisors in bankruptcy, but their expertise comes along with a hefty price.

Another possibility you may think about is your accountant - they are incredibly useful and vital to the process of running your business, but for the most part, when you are thinking about Bankruptcy, your accountant won't be much help to you anymore.

Your best bet? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and basically all you need to know when it comes to Bankruptcy.

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Advice Australia on 1300 879 867, or visit our website: bankruptcy-advice.com.au