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Written 15th March 2016 – By Charles Bosse– If checking this out considerably after this time, feel free to read through some of our other blog posts to verify the data is still up to date. Do you realise just how much Bankruptcy in Gosford is likely to be changing? The Australian Government at the end of 2015 produced some extreme propositions and prospective modifications to the Bankruptcy Laws in Australia, especially when it relates to the duration of bankruptcy. At this time, there is a minimal amount of time that you need to remain insolvent, having said that, this 3 year duration may well be decreased to just 12 months. So if you are looking at insolvency, these alterations 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 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 problem is he attempting to resolve? Currently, the laws don’t have sufficient protections, to the degree that Mr Carnegie, continued to point out in the Financial Review that providing protection to household 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 prevented financiers from supporting start-ups, and therefore mentoring had been “driven out of the system” and lots of individuals are too anxious 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”. That indicates that right now, the current laws are costing the overall economy and they may benefit you, but they can be exploited and in some cases the innocent fall in the voids and get unjustly penalized. Just what is being proposed? The proposition is to have the 3 year bankruptcy duration decreased to just 12 months when there is no sign of fraud or dishonest practices. These improvements will mean a lot for Bankruptcy and will take approximately 18 months to execute. What is Fraudulent Behaviour? Fraudulent behaviour is basically a phrase that covers all of the negative things. So when it involves Bankruptcy, this means that it will deal with behaving dishonestly, concealing assets, taking negligent risks, acting unethically or just generally attempting to scam others. One proposed idea is that while they are decreasing the amount of time for people behaving truthfully, they may in fact implement a counter proposition to pinpoint those acting particularly dishonestly and increase the amount of time. There are already some provisions in position for when you do not comply with particular regulations (and I encourage you to read more about Bankruptcy to make sure you don’t accidentally break these guidelines) but it will be interesting to observe how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be great for business and I hope that you read these alterations to Bankruptcy and are getting as excited as I am. These recommended changes will be good for businesses because it will motivate additional people to get involved and take calculated risks– There will however be penalties in effect, but it will not be unfairly reprimanding people who make truly honest mistakes. Most business owners I assist with Bankruptcy, are hardworking, tax paying, businesses that are keeping this country going and so I am delighted to see what will be happening next with this, and just how it will impact Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really need some support with your debts in Gosford or are just considering Bankruptcy, don’t hesitate to call us here at Bankruptcy Experts Gosford on 1300 795 575, or visit our website: www.bankruptcyexpertsgosford.com.au

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