The federal government introduced The Bankruptcy Amendment (Enterprise Incentives) Bill 2017 late last year. This is why, at Debt Free Australia (DFA), we want to make sure you know how these changes will affect you.

These new laws aim to decrease stigma around bankruptcy and give bankrupts a ‘fresh start’. The negative effects caused by the harsh bankruptcy laws that are currently in place discourages many potential entrepreneurs from pursuing their business endeavours.

What changes have been proposed?
If passed by Parliament the new bankruptcy bill will reduce the default period of bankruptcy from three years to one year.

What will this mean for me?
These changes gives bankrupts a chance to re-engage in business sooner and take on entrepreneurial activities and to start new companies. A reduction in the stigma associated with bankruptcy allows the re-assimilation process to be smoother and feel less demeaning.

Life after bankruptcy can feel intimidating to some people. That is why at Debt Free Australia, we are always ready to help you explore your personal debt solutions. If you would like to speak to a professional to learn more about them, then please contact DFA. We offer a FREE initial consultation so that you can get unbiased, expert advice on which one is right for you. Our toll-free hotline operates 24/7 so you can call us at your own convenience on 1800 462 767.

In recent news, AFSA (Australian Financial Security Authority) have released statistics showing that Australians have recorded the highest rate of bankruptcy since June 2016. There has been a sudden increase in the number of Australians declaring bankruptcy, which may appear to be a bad thing, however, with recent developments it is possible that some Australians see it as the best option.

Of course, bankruptcy does impact your credit rating and places certain restrictions on you, however, with amendments currently being proposed, bankruptcy may soon become an even more viable option to many Australians. If you are under extreme financial hardship and you can no longer manage your debts, bankruptcy will relieve that pressure. Any debt that isn’t tied to a security (credit card, personal loans) will be written off once you declare bankruptcy.

Although obtaining credit will prove to be a difficult task for up to 5 years, a bankruptcy provides you with a fantastic opportunity to start afresh and will allow you to rebuild your personal financial strength.

If you would like to learn more about bankruptcy and any other personal debt solutions it is best to contact a professional to understand what best fits you. Please contact Debt Free Australia where we offer a FREE initial consultation so that you can get unbiased, expert advice on how a bankruptcy can be best for you. Our toll-free hotline operates 24/7 so you can call us at your own convenience on 1800 462 767.

Bankruptcy is often labeled as a long and tedious process that can leave you with various negative implications for the future. A new bankruptcy bill was introduced into Federal Parliament on the 19th of October 2017, which proposes a few fundamental changes to the bankruptcy regime.

One of the key changes proposed in the new bankruptcy bill is that the duration of bankruptcy will be reduced from 3 years down to 1 year, however, if you are liable to pay income contributions that obligation will stay in place for 3 years (ie for another 2 years after you are discharged from bankruptcy). However, if you are not compliant and you breach certain obligations under the Bankruptcy Act, your trustee will still have the power to extend your bankruptcy up to 5 or 8 years depending on the nature of the breach.

If you would like to speak to a professional to learn more about your options, then please contact Debt Free Australia. We offer a FREE initial consultation so that you can get unbiased, expert advice on which one is right for you. Our toll-free hotline operates 24/7 so you can call us at your own convenience on 1800 462 767.