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Written 15th March 2016 – By Charles Bosse– If checking this out significantly after this date, feel free to review a few of our other blogs to establish the information is still up to date. Do you know just how much Bankruptcy in Rockhampton is likely to be changing? The Australian Government at the end of 2015 formulated some extreme proposals and prospective alterations to the Bankruptcy Laws in Australia, especially when it concerns the length of insolvency. At this time, there is a minimum quantity of time that you must stay bankrupt, having said that, this 3 year period may well be lowered to just 12 months. So if you are considering going bankrupt, these changes are going to be rather 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 complication is he aiming to resolve? Presently, the legislations don’t have adequate protections, to the level that Mr Carnegie, continued to say in the Financial Review that giving security to household assets was required because “banks just terrorise small business and the mental health consequences to society are enormous”. The trouble is Australia’s bankruptcy laws deterred financiers from supporting start-ups, and therefore 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”. This suggests that at the moment, the present laws are costing the economy and they may work for you, but they can possibly be exploited and in some cases the innocent fall within the voids and get unjustly penalized. What is being proposed? The recommendation is to have the 3 year bankruptcy time period reduced to just 12 months when there is zero indication of fraud or dishonest practices. These developments will mean a lot for Bankruptcy and will likely take at the very least 18 months to apply. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a phrase that addresses all of the bad factors. So when it comes to Bankruptcy, this means that it will cover acting dishonestly, hiding assets, taking careless risks, behaving unethically or just generally trying to con individuals. One proposed recommendation is that while they are decreasing the time for those acting honestly, they could actually implement a counter proposal to pinpoint those behaving significantly dishonestly and raise the time. There are currently some provisions in place for whenever you do not comply with certain rules (and I recommend you to read more about Bankruptcy to make sure you don’t accidentally break these rules) but it will be interesting to observe exactly how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be great for business and I really hope that you are reading these alterations to Bankruptcy and are getting as thrilled as I am. These recommended modifications will be good for small businesses because it will encourage additional individuals to get involved and take calculated risks– There will nonetheless be penalties in effect, but it won’t be unfairly reprimanding individuals who make truly honest miscalculations. Many business owners I assist with Bankruptcy, are hardworking, tax paying, businesses that are helping keep this country going and so I am thrilled to observe what will be happening next with this, and how it will affect Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really require some assistance with your financial debts in Rockhampton or are just considering Bankruptcy, feel free to call us here at Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website: www.bankruptcyexpertsrockhampton.com.au