Do you have knowledge of just how much Bankruptcy
in Darwin is changing? The Australian Government in late 2015 put forward some
underlying changes to the Bankruptcy Laws in Australia. Among the most
significant of these is the length of time that a person is bankrupt for. Now,
there is a minimum amount of time that you must stay bankrupt, having said
that, this 3 year period may in fact be reduced to just 12 months. So if you
are asking about Bankruptcy, this news may be quite important to you.
Mark Carnegie in the Financial Review on
the 7th December 2015 suggested 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 updates 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 around this Bankruptcy
issue in Darwin that some come up with is that this change will only encourage
fraudulent behavior opening pandora's box in a manner of speaking for the
unscrupulous to misuse of the bankruptcy system. We have looked into the
minimum, but on the other side of the matter, The government is not
recommending to change the maximum term of 8 years if it deems a bankrupt has
performed in an unethical or fraudulent way, and there are no recommendations
to change the penalties of misrepresenting yourself or financial situation when
filing for bankruptcy in Australia.
As a bankruptcy professional in Darwin, I
have a decent share of knowledge when it concerns Bankruptcy. And having dealt
with countless bankruptcy cases in Darwin I have never come across someone
abusing the system or acting in an irresponsible way as to exploit the bankruptcy
laws in Australia. When it comes to Bankruptcy, each week I help a small
business owner or entrepreneur go through the very tough task of bankruptcy,
not once have I perceived they are happy about it. The average small business
owner or entrepreneur in Darwin does not start out taking enormous financial
risks with the intention to fail. The media really loves citing the apparent
abuse 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 best and brightest in Darwin not get kicked out of the game
financially for financial decisions often outside of their control. Most small
business owners I help with Bankruptcy, are hardworking, tax paying, employers
keeping this country going.
Certainly there is a fine line with the
things the government is trying to do here, since they are aiming to balance
helping people who have made decisions out of their control, and preventing
people from making blunders that land them in trouble and therefore an issue of
Bankruptcy. However you likewise don't want to eliminate the experience and
knowledge that business owners have. You surely don't want to shatter people
simply because they have had a genuine failure in a large or small start-up project
that has not gone well.
At the major end of town large reputable
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 insolvency were minimized
because directors are troubled they'll be personally responsible in an
insolvency arrangement if the new venture doesn't work out.
The government's suggested 'safe haven'
changes for directors of companies will enable Australia to more fully explore
and innovate, which will make big updates for Bankruptcy. I can not imagine,
that these variations will be damaging to Australia's economy, in fact these
bankruptcy laws will save the tax payer in all areas of health - Especially in
the mental health field because the emotional cost of bankruptcy is extensive.
When it comes to Bankruptcy in Darwin not a day goes by where I don't find out
the tragic experiences of relationship failures, thoughts of suicide and the
list goes on.
Bankruptcy helps save lives, and it could
save yours. If you are in need of some help with your debts in Darwin or are
just considering Bankruptcy, feel free to give us a call here at Bankruptcy
Advice Darwin on 1300 879 867, or visit our website: www. bankruptcy-advice.com.au/darwin
