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

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

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Written 15th March 2016 – By Charles Bosse– If reading this significantly after this date, feel free to check out some of our additional blog posts to establish the relevant information is still up to date. Do you know just how much Bankruptcy in Alice Springs is likely to be changing? The Australian Government at the end of 2015 developed some radical propositions and possible alterations to the Bankruptcy Laws in Australia, particularly when it concerns the length of insolvency. At this time, there is a minimum amount of time that you will need to remain insolvent, having said that, this 3 year duration may effectively be reduced to just 12 months. So if you are looking at insolvency, these developments are going to be relatively significant to you! How did this all come to be? 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 aiming to resolve? Currently, the laws don’t have enough protections, to the level that Mr Carnegie, went on to point out in the Financial Review that giving protection to family assets was essential because “banks just terrorise small business and the mental health consequences to society are enormous”. The issue is Australia’s bankruptcy laws prevented investors from supporting start-ups, and for that reason mentoring had been “driven out of the system” and lots of people 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 currently, the existing rules are costing the economy and they may benefit you, however they can be exploited and occasionally the innocent fall in the voids and get unjustly punished. What is being proposed? The recommendation is to get the 3 year bankruptcy time period minimized to just 12 months when there is no sign of fraud or unethical practices. These improvements will signify a lot for Bankruptcy and will take approximately 18 months to apply. What is Fraudulent Behaviour? Fraudulent behaviour is essentially a term that covers all the bad things. So when it involves Bankruptcy, this indicates that it will deal with acting dishonestly, concealing assets, taking careless risks, acting unethically or just generally attempting to con others. One proposed strategy is that although they are lowering the time for individuals acting truthfully, they could actually carry out a counter proposal to target those behaving particularly dishonestly and raise the time. There are already some arrangements in position for when you do not follow certain rules (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 how this develops. So is this a Win for Small Business? Yes, definitely! This is going to be excellent for business and I really hope that you are reading these changes to Bankruptcy and are getting as thrilled as I am. These recommended changes will be good for small businesses because it will encourage more individuals to get engaged and take calculated risks– There will however be penalties in effect, but it will not be unfairly punishing those who make truly honest miscalculations. Many small 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 happening next with this, and just how it will impact Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really need some support with your financial obligations in Alice Springs or are just thinking about Bankruptcy, do not hesitate to phone us here at Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website: www.bankruptcyexpertsalicesprings.com.au

By | 2016-10-13T23:56:01+00:00 October 13th, 2016|article, blog|0 Comments

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