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

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

Written 15th March 2016 – By Charles Bosse– If reading this considerably after this time, feel free to read through a few of our other blogs to validate the details is still up to date. Do you know just how much Bankruptcy in Frankston is likely to be changing? The Australian Government by the end of 2015 formulated some extreme propositions and possible changes to the Bankruptcy Laws in Australia, especially when it involves the duration of insolvency. Right now, there is a minimal quantity of time that you must stay bankrupt, having said that, this 3 year duration may effectively be lowered to just 12 months. So if you are looking into bankruptcy, these alterations are going to be quite important to you! How did this all happen? Well, Mark Carnegie (an expert in this field) commented back in December 2015 in the Financial Review that there was going to be recommendations 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 problem is he attempting to resolve? Presently, the laws don’t have enough protections, to the degree that Mr Carnegie, went on to mention in the Financial Review that offering safeguards to household assets was necessary since “banks just terrorise small business and the mental health consequences to society are enormous”. The trouble is Australia’s bankruptcy laws deterred financiers from supporting start-ups, and for that reason mentoring had been “driven out of the system” and too many individuals 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 indicates that presently, the current laws are costing the overall economy and they may benefit you, but they could be exploited and in some cases the innocent fall within the gaps and get unfairly punished. What is being proposed? The recommendation is to get the 3 year bankruptcy time period reduced to just 12 months when there is zero indication of fraud or unethical practices. These improvements will signify a lot for Bankruptcy and will likely take at least 18 months to apply. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a phrase that addresses all of the negative points. So when it comes to Bankruptcy, this means that it will address behaving dishonestly, concealing assets, taking reckless risks, acting unethically or just generally trying to scam people. One proposed concept is that although they are reducing the time for those individuals behaving truthfully, they may actually carry out a counter proposition to pinpoint those behaving significantly dishonestly and maximize the amount of time. There are already some arrangements in effect for when you do not follow particular guidelines (and I recommend you to read more about Bankruptcy to make sure you don’t inadvertently break these rules) but it will be interesting to see how this develops. So is this a Win for Small Business? Yes, absolutely! This is going to be excellent for business and I really hope that you read these modifications to Bankruptcy and are getting as thrilled as I am. These proposed changes will be good for small businesses because it can encourage more individuals to get engaged and take calculated risks– There will however be penalties in place, but it will not be unfairly punishing those who make truly honest mistakes. Most business owners I help with Bankruptcy, are hardworking, tax paying, companies that are helping keep this country going and so I am excited to observe what will be taking place next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really need some support with your financial obligations in Frankston or are just thinking about Bankruptcy, do not hesitate to contact us here at Bankruptcy Experts Frankston on 1300 795 575, or visit our website: www.bankruptcyexpertsfrankston.com.au

By | 2017-10-11T03:25:25+00:00 October 14th, 2016|Bankruptcy, Liquidation|0 Comments

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