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

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Written 15th March 2016 – By Charles Bosse– If reading this greatly after this time, feel free to read through a few of our other blog posts to confirm the relevant information is still up to date. Do you realise just how much Bankruptcy in Parramatta is likely to be changing? The Australian Government by the end of 2015 formulated some extreme proposals and possible modifications to the Bankruptcy Laws in Australia, especially when it concerns the duration of personal bankruptcy. Right now, there is a minimal amount of time that you need to stay bankrupt, having said that, this 3 year period may effectively be decreased to just 12 months. So if you are considering insolvency, these alterations are going to be relatively critical to you! How did this all come to be? Well, Mark Carnegie (an expert in this area) remarked 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 complication is he trying to resolve? Presently, the legislations don’t have adequate protections, to the degree that Mr Carnegie, continued to say in the Financial Review that offering protection to family assets was necessary because “banks just terrorise small business and the mental health consequences to society are enormous”. The problem is Australia’s bankruptcy laws discouraged investors from supporting start-ups, and for that reason mentoring had been “driven out of the system” and too many individuals 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”. This implies that right now, the current legislations are costing the economy and they may work for you, however they can be manipulated and sometimes the innocent fall within the voids and get unjustly punished. Just what is being proposed? The proposal is to get the 3 year bankruptcy time period reduced to just 12 months when there is zero indication of fraudulence or unethical practices. These developments 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 includes every one of the bad points. So when it involves Bankruptcy, this means that it will cover behaving dishonestly, hiding assets, taking careless risks, behaving unethically or just commonly attempting to scam individuals. One proposed idea is that whilst they are decreasing the time for individuals acting honestly, they could in fact implement a counter proposition to pinpoint those acting especially dishonestly and increase the time. Certainly there are currently some arrangements in place for whenever you do not observe certain guidelines (and I encourage you to read more about Bankruptcy to make sure you don’t unintentionally break these guidelines) but it will be interesting to observe exactly how this develops. So is this a Win for Small Business? Yes, most definitely! This is going to be terrific for business and I hope that you read these alterations to Bankruptcy and are getting as delighted as I am. These suggested modifications will benefit local businesses because it can encourage more individuals to get involved and take estimated risks– There will nonetheless be consequences in effect, but it won’t be unfairly penalizing those who make truly honest miscalculations. Many business owners I assist with Bankruptcy, are hardworking, tax paying, businesses that are trying to keep this nation going and so I am thrilled to observe what will be occurring next with this, and just how it will impact Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really require some assistance with your debts in Parramatta or are just thinking about Bankruptcy, do not hesitate to phone us here at Bankruptcy Experts Parramatta on 1300 795 575, or visit our website: www.bankruptcyexpertsparramatta.com.au

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