Is Bankruptcy My Best Alternative? How To Know If Bankruptcy Is Right For You
Experiencing financial hardship is a very stressful situation and unfortunately, millions of individuals across the world find themselves in this position every day. People in this situation have various options to recover from their financial woes, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve possibly seen a couple of those debt consolidating businesses offer their services on television for example. In a lot of cases, it can be difficult to try to figure out the best way to recover from financial difficulties, and many will file for bankruptcy simply because it seems to be the easiest way of doing so. But how do you know if bankruptcy is the right alternative for you? This article will shed some light into bankruptcy in order to help you evaluate if bankruptcy is the best option for your personal scenario.
Bankruptcy has some pretty serious financial repercussions: a bad credit history, increased difficulty in securing loans, and higher interest rates are just several of these. So it goes without saying, bankruptcy should not 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 typically considered a feasible alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to identify if bankruptcy is the best option for you is to ask for specialist advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in a serious condition and bankruptcy may be the best option for you.
If you don’t have any savings in your bank account and you’re sustaining a mountain of debt, then bankruptcy may well be the best solution for you. Even if you are capable to work a second job to increase your earnings, will this enable you to recover from your debts in the next 5 years? If no, then you should look into seeking professional advice about your position, as bankruptcy can be a desirable alternative. Filing for 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 manage 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 situation worsens. 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 truly amount to large sums of money. Even though you’ll still be paying off debts with interest after filing for bankruptcy, commonly you can arrange better terms on conditions on your debts after declaring bankruptcy.
Debt Collectors Are Calling You
When you’re being frequently hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial situation is worsening and you need to make some changes. When you’re being contacted by debt collectors, it means that your creditors have sold your debts at highly discounted rates to debt collectors because they believe that you aren’t in a position to repay these debts in an acceptable period of time. This is a clear indication that you should seriously consider filing for bankruptcy as it’s likely the best option for both your finances and your psychological well-being.
Whilst 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 options available to help 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 prosperous future. In any case, if you’re encountering financial difficulties, it’s best to contact bankruptcy professionals sooner rather than later. For a confidential discussion about your financial scenario, contact Bankruptcy Experts Wollongong on 1300 795 575 or visit www.bankruptcyexpertswollongong.com.au