Thursday, July 7, 2016

Bankruptcy in Port Macquarie - Changes to aid Small Business and Entrepreneurs


Do you appreciate just how much Bankruptcy PortMacquarie is changing? The Australian Government in late 2015 suggested some underlying changes to the Bankruptcy Laws in Australia. One of the most significant of these is the length of time that a person is bankrupt for. At this time, there is a minimum amount of time that you must continue to be bankrupt, having said that, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be rather important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 proposed that "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".

These updates to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that giving protection to family assets was important because "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 as a result mentoring had been "driven out of the system".

"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."

Fraudulent Behavior

The controversy about this Bankruptcy issue in Port Macquarie that some come up with is that this modification will only strengthen fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to violation of the bankruptcy system. We have looked at the minimum, but on the other side of the matter, The government is not suggesting to change the maximum term of 8 years if it deems a bankrupt has operated in an unethical or fraudulent way, and there are no propositions to change the repercussions of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Port Macquarie, I have a reasonable share of practical experience when it comes to Bankruptcy. And having dealt with thousands of bankruptcy cases in Port Macquarie I have never uncovered someone abusing the system or acting in an unaccountable way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur go through the very problematic task of bankruptcy, not once have I thought they are happy about it. The average small business owner or entrepreneur in Port Macquarie does not start out taking enormous financial risks with the intent to fail. The media really loves citing the apparent wrongdoing that will be rampant if these changes occur, what a joke!

A Win for Small Business

These suggested changes will be good for often the very best and brightest in Port Macquarie not get kicked out of the game financially for financial decisions often out of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, managers keeping this country going.

There is a fine line with precisely what the government is trying to do here, because they are trying to balance helping individuals who have made decisions out of their control, and dissuading people from making problems that land them in trouble and therefore an issue of Bankruptcy. However you also don't want to eliminate the experience and knowledge that business owners have. You undoubtedly don't want to shatter people simply because they have had an honest failure in a large or small start-up enterprise that has not succeeded.

At the major end of town large well established companies have long been criticised for their failure to innovate - lets face it they would be more likely to do so if the risks of insolvency were minimized because directors are concerned they'll be personally liable in an insolvency arrangement if the new project doesn't work out.

The government's suggested 'safe haven' modifications for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I can not imagine, that these modifications will be detrimental to Australia's economy, in reality these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health sector because the emotional cost of bankruptcy is enormous. When it comes to Bankruptcy in Port Macquarie not a day passes where I don't hear the tragic stories of relationship failures, thoughts of suicide and the list goes on.


Bankruptcy helps save lives, and it could save yours. If you want some help with your debts in Port Macquarie or are just thinking of Bankruptcy, don't hesitate to contact us here at Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website: bankruptcyexpertsportmacquarie.com.au

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