Going through financial hardship is a very stressful situation and unfortunately, millions of people across the world find themselves in this position each day. People in this predicament have a number of options to recover from their financial distress, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve quite possibly seen several of those debt consolidating companies advertise their services on TV for example. In the majority of cases, it can be confusing to try to find out an effective way to recover from financial difficulties, and many will file for bankruptcy simply because it appears to be the simplest way of doing so. But how do you know if bankruptcy is the right choice for you? This article will shed some light into bankruptcy to help you determine if bankruptcy is the best option for your individual scenario.
Bankruptcy has some rather severe financial penalties: a bad credit rating, increased difficulty in obtaining loans, and higher interest rates are just a couple of these. So it goes without saying, bankruptcy shouldn’t be taken lightly. There are an abundance of debt consolidating companies that more than happy to help, which is similar to bankruptcy as all your debts are combined into one. This is normally considered a good alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to determine if bankruptcy is the best option for you is to seek specialist advice from bankruptcy experts. In the meantime, however, here are some indications that your financial situation is in a dangerous condition and bankruptcy may be the best alternative for you.
If you don’t have any money in your bank account and you’re sustaining a mountain of debt, then bankruptcy may well be the best option for you. Even if you’re able to work a second job to increase your income, will this allow you to recover from your debts in the next five years? If no, then you should think about seeking professional advice about your position, as bankruptcy can be a feasible alternative. Declaring bankruptcy will relieve you of these debts and even though there are financial consequences, it’s probably the best way to recover in this situation.
Making Minimum Repayments Only
If you can only afford to make the minimum repayments on your debts, then the interest on these debts will magnify aggressively and you should really consider bankruptcy before your financial issues gets worse. Without any extra income, it can often times take up to 30 years to repay your debts by making minimum repayments only, so all the interest you’ll be paying over these years can really amount to large sums of money. Whilst you’ll still be repaying debts with interest after declaring bankruptcy, normally you can negotiate better terms on conditions on your debts after filing for bankruptcy.
Debt Collectors Are Calling You
When you’re being persistently hassled by debt collectors on the phone and in the mail, it’s a sign that your financial position is deteriorating and you ought to make some changes. When you’re being contacted by debt collectors, it means that your creditors have sold your debts at heavily discounted rates to debt collectors because they feel that you aren’t in a position to settle these debts in a reasonable period of time. This is a clear indication that you should honestly consider declaring bankruptcy as it’s probably the best option for both your finances and your emotional well-being.
Though there are some severe financial implications, bankruptcy isn’t the end of the world and in most cases, it’s the first step to financial freedom. When you’re grappling with a mountain of debt and you can’t see any way of recovering in the near future, it’s time to seek professional advice to figure out what options you have. While there are many alternatives available to assist you in financial hardship, if you’re encountering any of these warning signs then chances are that bankruptcy is the best alternative to ensure you and your family can secure a bright future. In any case, if you’re experiencing financial difficulties, it’s best to get in touch with bankruptcy professionals sooner rather than later. For a confidential discussion regarding your financial circumstances, contact Bankruptcy Experts Taree on 1300 795 575 or visit www.bankruptcyexpertstaree.com.au