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

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Bankruptcy in Dubbo – 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 time, please check out a few of our additional blog posts to validate the relevant information is still up to date. Do you know just how much Bankruptcy in Dubbo is going to be changing? The Australian Government at the end of 2015 developed some radical proposals and potential modifications to the Bankruptcy Laws in Australia, specifically when it comes to the duration of personal bankruptcy. At the moment, there is a minimal 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 quite significant to you! Exactly how did this all happen? Well, Mark Carnegie (an expert in this area) commented back in December 2015 in the Financial Review that there was going to be suggestions 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? Currently, the laws don’t have adequate protections, to the degree that Mr Carnegie, continued to point out in the Financial Review that providing safeguards to household assets was necessary since “banks just terrorise small business and the mental health consequences to society are enormous”. The problem is Australia’s bankruptcy laws prevented financiers from assisting 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 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 currently, the present rules are costing the overall economy and they may work with you, however they could be manipulated and occasionally the innocent fall within the voids and get unfairly penalized. What is being proposed? The recommendation is to get the 3 year bankruptcy period reduced to just 12 months when there is zero sign of fraudulence or dishonest practices. These developments will signify a lot for Bankruptcy and will likely take at the very least 18 months to execute. What is Fraudulent Behaviour? Fraudulent behaviour is basically a term that covers every one of the bad factors. So when it involves Bankruptcy, this means that it will address acting dishonestly, concealing assets, taking careless risks, behaving unethically or just generally attempting to con others. One proposed recommendation is that whilst they are lowering the amount of time for individuals acting truthfully, they may actually execute a counter proposition to target those acting especially dishonestly and maximize the time. Certainly there are currently some arrangements in position for whenever you do not observe certain rules (and I recommend you to read more about Bankruptcy to make sure you don’t inadvertently break these rules) but it will be interesting to observe exactly how this evolves. So is this a Win for Small Business? Yes, absolutely! This is going to be terrific for business and I hope that you are reading these alterations to Bankruptcy and are getting as thrilled as I am. These suggested modifications will benefit small businesses because it can encourage additional individuals to get involved and take calculated risks– There will however be consequences in place, but it will not be unfairly reprimanding those who make truly honest miscalculations. Many small business owners I assist with Bankruptcy, are hardworking, tax paying, businesses that are keeping 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 could possibly save yours. If you really require some assistance with your financial obligations in Dubbo or are just thinking about Bankruptcy, don’t hesitate to contact us here at Bankruptcy Experts Dubbo on 1300 795 575, or visit our website: www.bankruptcyexpertsdubbo.com.au

By | 2018-07-30T03:15:01+00:00 October 14th, 2016|banrkuptcy, blog|0 Comments

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