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Written 15th March 2016 – By Charles Bosse– If checking this out significantly after this date, please go through a few of our other blog posts to establish the data is still up to date. Do you realise just how much Bankruptcy in Shepparton is going to be changing? The Australian Government at the end of 2015 came up with some extreme plans and possible changes to the Bankruptcy Laws in Australia, especially when it concerns the length of personal bankruptcy. Right now, there is a minimal quantity of time that you need to remain insolvent, having said that, this 3 year duration may very well be reduced to just 12 months. So if you are considering bankruptcy, these alterations are going to be quite significant 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 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 attempting to resolve? At the moment, the laws don’t have sufficient protections, to the level that Mr Carnegie, went on to point out 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 problem is Australia’s bankruptcy laws deterred investors from assisting start-ups, and for that reason mentoring had been “driven out of the system” and too many people are too troubled to try and invest or try 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 suggests that presently, the existing laws are costing the economy and they may benefit you, however they could be exploited and occasionally the innocent fall within the voids and get unjustly penalized. Just what is being proposed? The recommendation is to have the 3 year bankruptcy period reduced to just 12 months when there is no sign of fraud or unethical behaviour. These developments will mean a lot for Bankruptcy and will take at the very least 18 months to execute. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a phrase that addresses every one of the negative points. So when it involves Bankruptcy, this means that it will deal with acting dishonestly, hiding assets, taking reckless risks, behaving unethically or just generally attempting to con others. One proposed concept is that although they are reducing the amount of time for those individuals acting truthfully, they may in fact execute a counter proposal to target those acting particularly dishonestly and raise the amount of time. There are already some regulations in effect for when you do not follow certain regulations (and I recommend you to find out more about Bankruptcy to make sure you don’t inadvertently break these guidelines) but it will be interesting to see how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be excellent for business and I hope that you read these alterations to Bankruptcy and are getting as excited as I am. These recommended changes will benefit small businesses because it can motivate more individuals to get engaged and take estimated risks– There will nonetheless be penalties in effect, but it will not be unfairly penalizing individuals who make truly honest mistakes. Many small 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 see what will be occurring next with this, and 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 Shepparton or are just thinking about Bankruptcy, do not hesitate to phone us here at Bankruptcy Experts Shepparton on 1300 795 575, or visit our website: www.bankruptcyexpertsshepparton.com.au