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Written 15th March 2016 – By Charles Bosse– If checking this out significantly after this time, please go through some of our additional blog posts to confirm the relevant information is still up to date. Do you realise just how much Bankruptcy in Brisbane is going to be changing? The Australian Government at the end of 2015 came up with some extreme propositions and potential modifications to the Bankruptcy Laws in Australia, specifically when it concerns the duration 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 effectively be lowered to just 12 months. So if you are looking into insolvency, these changes are going to be rather important to you! Exactly how did this all happen? Well, Mark Carnegie (an expert in this field) reviewed back in December 2015 in the Financial Review that there was going to be recommendations 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 trying to repair? Presently, the legislations don’t have enough protections, to the level that Mr Carnegie, went on to point out in the Financial Review that giving safeguards to household assets was required since “banks just terrorise small business and the mental health consequences to society are enormous”. The problem is Australia’s bankruptcy laws prevented investors from supporting start-ups, and for that reason mentoring had been “driven out of the system” and several individuals are too anxious to try and invest or try 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 presently, the present laws are costing the overall economy and they may benefit you, but they can possibly be exploited and occasionally the innocent fall within the gaps and get unjustly penalized. What is being proposed? The recommendation is to get the 3 year bankruptcy period reduced to just 12 months when there is zero indication of fraudulence or dishonest practices. These improvements will signify a lot for Bankruptcy and will likely take approximately 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a phrase that includes every one 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 generally attempting to scam individuals. One proposed concept is that whilst they are lowering the amount of time for those behaving honestly, they may in fact carry out a counter proposition to target those behaving particularly dishonestly and maximize the time. There are currently some provisions in place for whenever you do not observe certain guidelines (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 exactly how this develops. So is this a Win for Small Business? Yes, absolutely! This is going to be terrific for small business and I hope that you read these alterations to Bankruptcy and are getting as thrilled as I am. These suggested changes will be good for local businesses because it will encourage additional people to get involved and take calculated risks– There will still be consequences in place, but it will not be unfairly penalizing individuals who make genuinely honest miscalculations. Most business owners I assist with Bankruptcy, are hardworking, tax paying, businesses that are trying to keep this country going and so I am excited to observe what will be occurring next with this, and how it will affect Bankruptcy. Bankruptcy helps save lives, and it could save yours. If you really require some assistance with your financial obligations in Brisbane or are just considering Bankruptcy, do not hesitate to phone us here at Bankruptcy Experts Brisbane on 1300 795 575, or visit our website: www.bankruptcyexpertsbrisbane.com.au