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

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

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Written 15th March 2016 – By Charles Bosse– If reading this considerably after this time, please read through some of our various blogs to validate the data is still up to date. Do you know just how much Bankruptcy in Cassowary Coast is likely to be changing? The Australian Government at the end of 2015 formulated some extreme proposals and possible changes to the Bankruptcy Laws in Australia, particularly when it relates to the duration of personal bankruptcy. At this time, there is a minimum amount of time that you must remain bankrupt, having said that, this 3 year duration may effectively be reduced to just 12 months. So if you are looking into bankruptcy, these developments are going to be rather important 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 trying to resolve? Currently, the laws don’t have enough protections, to the extent that Mr Carnegie, went on to mention in the Financial Review that giving safeguards to family assets was essential 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 for that reason mentoring had been “driven out of the system” and lots of individuals 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 right now, the current rules are costing the overall economy and they may work with you, but they can possibly be manipulated and in some cases the innocent fall within the voids and get unjustly punished. What is being proposed? The recommendation is to have the 3 year bankruptcy duration minimized to just 12 months when there is no indication of fraudulence or dishonest practices. These improvements will mean a lot for Bankruptcy and will likely take approximately 18 months to apply. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a term that covers every one of the bad factors. So when it concerns Bankruptcy, this means that it will cover acting dishonestly, concealing assets, taking negligent risks, acting unethically or just commonly attempting to scam others. One proposed concept is that although they are decreasing the time for people behaving truthfully, they may actually execute a counter proposition to target those acting particularly dishonestly and maximize the time. There are currently some regulations in position for when you do not observe particular guidelines (and I recommend you to find out more about Bankruptcy to make sure you don’t unintentionally break these rules) but it will be interesting to see exactly how this develops. So is this a Win for Small Business? Yes, absolutely! This is going to be great for business and I hope that you read these modifications to Bankruptcy and are getting as excited as I am. These proposed changes will benefit businesses because it can urge additional individuals to get involved and take calculated risks– There will still be consequences in effect, but it won’t be unfairly reprimanding people who make truly honest miscalculations. Most small business owners I help with Bankruptcy, are hardworking, tax paying, companies that are keeping this country going and so I am delighted to see what will be happening next with this, and how it will affect Bankruptcy. Bankruptcy helps save lives, and it could possibly save yours. If you really need some assistance with your debts in Cassowary Coast or are just considering Bankruptcy, do not hesitate to call us here at Bankruptcy Experts Cassowary Coast on 1300 795 575, or visit our website: www.bankruptcyexpertscassowarycoast.com.au