Going through financial hardship is a very stressful situation and unfortunately, millions of people across the world find themselves in this position every day. People in this predicament have numerous options to recover from their financial woes, and bankruptcy should be regarded as a last resort when all other alternatives have been exhausted. You’ve quite possibly seen some of those debt consolidating companies offer their services on television for example. In a lot of cases, it can be confusing to try to work out ways to recover from financial difficulties, and many will file for bankruptcy simply because it seems the simplest way of doing so. But how do you know if bankruptcy is the right option for you? This article will shed some light into bankruptcy in order to help you figure out if bankruptcy is the best option for your personal scenario.
Bankruptcy has some fairly severe financial implications: a bad credit report, increased difficulty in securing loans, and higher interest rates are just a couple of these. So it goes without saying, bankruptcy should never be taken lightly. There are numerous debt consolidating businesses that more than happy to help, which is similar to bankruptcy as all your debts are consolidated into one. This is commonly considered a sensible alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to figure out if bankruptcy is the best alternative for you is to seek 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 the bank and you’re experiencing a mountain of debt, then bankruptcy may well be the best solution for you. Even if youcan manage to work a second job to increase your income, will this allow you to recover from your debts in the next 5 years? If no, then you should look into seeking professional advice about your scenario, as bankruptcy can be a desirable alternative. Filing for bankruptcy will relieve you of these debts and while 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 rapidly and you should really consider bankruptcy before your financial position gets worse. With no 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. While you’ll still be repaying debts with interest after declaring bankruptcy, typically you can arrange better terms on conditions on your debts after filing for bankruptcy.
Debt Collectors Are Calling You
When you’re being regularly hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial position is worsening 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 prices to debt collectors because they believe that you aren’t in a position to repay these debts in a reasonable time frame. This is a clear indicator that you should seriously think about filing for bankruptcy as it’s possibly the best option for both your finances and your emotional well-being.
While there are some serious financial consequences, bankruptcy isn’t the end of the world and in most cases, it’s the first step to financial freedom. When you’re dealing 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 find out what options you have. While there are many options available to assist you in financial hardship, if you’re encountering any of the above 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 facing financial difficulties, it’s best to consult with bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial circumstances, contact Bankruptcy Experts Port Macquarie on 1300 795 575 or visit www.bankruptcyexpertsportmacquarie.com.au