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

Bankruptcy Penrith, Bankrupt Penrith, Insolvency Penrith
Bankruptcy in Penrith and how to avoid getting bitten.
October 7, 2016
Bankruptcy Penrith, Bankrupt Penrith, Insolvency Penrith
Bankruptcy in Penrith– Voluntary or involuntary bankruptcy?
October 18, 2016

Bankruptcy Penrith, Bankrupt Penrith, Insolvency Penrith

Written 15th March 2016 – By Charles Bosse– If reading this considerably after this date, feel free to go through a few of our other blogs to validate the data is still up to date. Do you realise just how much Bankruptcy in Penrith is likely to be changing? The Australian Government at the end of 2015 came up with some extreme plans and prospective alterations to the Bankruptcy Laws in Australia, specifically when it comes to the duration of bankruptcy. At this time, there is a minimal amount of time that you need to stay insolvent, having said that, this 3 year duration may well be lowered to just 12 months. So if you are looking into bankruptcy, these changes are going to be quite critical to you! Exactly how did this all happen? Well, Mark Carnegie (an expert in this area) remarked 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 problem is he attempting to fix? Currently, the laws don’t have adequate protections, to the level that Mr Carnegie, proceeded to point out in the Financial Review that offering security to household assets was needed because “banks just terrorise small business and the mental health consequences to society are enormous”. The problem is Australia’s bankruptcy laws deterred financiers from supporting start-ups, and therefore mentoring had been “driven out of the system” and too many people are too worried to try and invest or attempt 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 at the moment, the present rules are costing the economy and they may work for you, but they can possibly be exploited and sometimes the innocent fall within the gaps and get unfairly penalized. Just what is being proposed? The recommendation is to have the 3 year bankruptcy time period 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 take at least 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is basically a phrase that addresses all the bad points. So when it comes to Bankruptcy, this indicates that it will deal with behaving dishonestly, concealing assets, taking negligent risks, behaving unethically or just generally attempting to con people. One proposed recommendation is that while they are lowering the time for those individuals behaving honestly, they may in fact execute a counter proposition to target those acting significantly dishonestly and maximize the time. Certainly there are already some arrangements in place for when you do not follow particular guidelines (and I encourage you to find out more about Bankruptcy to make sure you don’t accidentally break these rules) 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 great for small business and I really hope that you read these modifications to Bankruptcy and are getting as delighted as I am. These proposed changes will be good for small businesses because it can urge more individuals to get involved and take estimated risks– There will however be consequences in effect, but it won’t be unfairly reprimanding people who make truly honest mistakes. Most small business owners I help with Bankruptcy, are hardworking, tax paying, companies that are keeping this nation going and so I am thrilled to see what will be happening next with this, and just how it will affect Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really require some assistance with your financial debts in Penrith or are just considering Bankruptcy, don’t hesitate to phone us here at Bankruptcy Experts Penrith on 1300 795 575, or visit our website: www.bankruptcyexpertspenrith.com.au

Comments are closed.