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Written 15th March 2016 – By Charles Bosse– If reading this greatly after this date, feel free to go through a few of our additional blog posts to validate the information is still up to date. Do you know just how much Bankruptcy in Townsville is likely to be changing? The Australian Government by the end of 2015 came up with some radical plans and prospective modifications to the Bankruptcy Laws in Australia, especially when it comes to the length of insolvency. At this time, there is a minimal amount of time that you need to stay bankrupt, having said that, this 3 year period may well be reduced to just 12 months. So if you are looking at insolvency, these alterations are going to be rather important to you! 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 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 attempting to resolve? At the moment, the legislations don’t have sufficient protections, to the extent that Mr Carnegie, went on to point out in the Financial Review that giving security to family assets was necessary because “banks just terrorise small business and the mental health consequences to society are enormous”. The issue is Australia’s bankruptcy laws discouraged financiers from assisting start-ups, and for that reason mentoring had been “driven out of the system” and lots of individuals are too troubled 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 means that right now, the existing laws are costing the overall economy and they may benefit you, however they can be exploited and in some cases the innocent fall in the voids and get unjustly punished. What is being proposed? The recommendation is to get the 3 year bankruptcy duration minimized to just 12 months when there is no sign of fraud or dishonest practices. These improvements will mean a lot for Bankruptcy and will likely take at least 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a term that addresses all the negative points. So when it comes to Bankruptcy, this means that it will cover behaving dishonestly, concealing assets, taking negligent risks, behaving unethically or just generally trying to con individuals. One proposed concept is that whilst they are reducing the time for those acting truthfully, they could actually execute a counter proposal to pinpoint those behaving especially dishonestly and raise the amount of time. Certainly there are currently some regulations in place for when you do not follow particular regulations (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 observe how this evolves. So is this a Win for Small Business? Yes, definitely! This is going to be terrific for small business and I hope that you are reading these modifications to Bankruptcy and are getting as delighted as I am. These proposed changes will benefit local businesses because it can encourage additional people to get engaged and take estimated risks– There will still be consequences in effect, but it won’t be unfairly reprimanding people who make genuinely honest miscalculations. Many business owners I help with Bankruptcy, are hardworking, tax paying, businesses that are keeping this nation going and so I am delighted to observe what will be happening next with this, and how it will affect Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really need some assistance with your financial debts in Townsville or are just thinking about Bankruptcy, do not hesitate to contact us here at Bankruptcy Experts Townsville on 1300 795 575, or visit our website: www.bankruptcyexpertstownsville.com.au