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Written 15th March 2016 – By Charles Bosse– If checking this out considerably after this time, feel free to go through some of our additional blog posts to establish the data is still up to date. Do you realise just how much Bankruptcy in Gladstone is likely to be changing? The Australian Government by the end of 2015 came up with some extreme propositions and prospective changes to the Bankruptcy Laws in Australia, particularly when it relates to the length of personal bankruptcy. Right now, there is a minimal amount of time that you must remain insolvent, having said that, this 3 year duration may very well be decreased to just 12 months. So if you are looking at going bankrupt, these alterations are going to be relatively significant to you! How did this all happen? Well, Mark Carnegie (an expert in this field) 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 issue is he trying to fix? Presently, the laws don’t have adequate protections, to the extent that Mr Carnegie, went on to mention in the Financial Review that offering 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 deterred financiers from supporting start-ups, and for that reason mentoring had been “driven out of the system” and several individuals are too troubled 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”. That indicates that currently, the present laws are costing the overall economy and they may work with you, however they can possibly be exploited and occasionally the innocent fall within 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 zero sign of fraud or unethical behaviour. 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 of the negative factors. So when it involves Bankruptcy, this indicates that it will cover behaving dishonestly, concealing assets, taking reckless risks, acting unethically or just commonly trying to con others. One proposed idea is that while they are decreasing the time for those individuals behaving honestly, they may actually execute a counter proposal to pinpoint those behaving especially dishonestly and raise the amount of time. There are currently some arrangements in place for whenever you do not follow certain rules (and I recommend you to find out more about Bankruptcy to make sure you don’t unintentionally break these guidelines) but it will be interesting to observe how this develops. So is this a Win for Small Business? Yes, most definitely! This is going to be terrific for business and I really hope that you read these modifications to Bankruptcy and are getting as excited as I am. These recommended changes will benefit small businesses because it can motivate additional individuals to get involved and take calculated risks– There will still be consequences in place, but it will not be unfairly punishing people 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 taking place next with this, and how it will affect Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really need some support with your financial obligations in Gladstone or are just thinking about Bankruptcy, feel free to contact us here at Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: