Is Bankruptcy My Best Option? How To Know If Bankruptcy Is Right For You
Going through financial hardship is a considerably stressful situation and unfortunately, millions of people around the world find themselves in this situation each day. People in this scenario have a number of options to recover from their financial burdens, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve most probably seen some of those debt consolidating companies promote their services on TV for example. In many cases, it can be overwhelming to try to work out how to recover from financial troubles, and many will declare bankruptcy simply because it appears 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 to help you determine if bankruptcy is the best option for your particular scenario.
Bankruptcy has some pretty severe financial penalties: a bad credit report, increased difficulty in obtaining loans, and higher interest rates are just some of these. So it goes without saying, bankruptcy should not be taken lightly. There are numerous debt consolidating businesses that are happy to help, which is similar to bankruptcy as all your debts are merged into one. This is typically considered a feasible alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to figure out if bankruptcy is the best solution for you is to seek reliable advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in a critical condition and bankruptcy may be the best option for you.
If you don’t have any money in the bank and you’re sustaining a mountain of debt, then bankruptcy may well be the best option for you. Even if you have the opportunity to work a second job to increase your cash flow, will this allow you to recover from your debts in the next 5 years? If no, then you should consider seeking professional advice about your condition, as bankruptcy can be a viable alternative. Filing for bankruptcy will relieve you of these debts and although 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 quickly and you should really consider bankruptcy before your financial issues decays further. With no additional income, it can sometimes 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 huge sums of money. Although you’ll still be paying off debts with interest after declaring bankruptcy, generally 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 an indicator that your financial scenario is worsening and you will need 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 strongly believe that you aren’t in a position to settle these debts in an acceptable period of time. This is a clear indication that you should honestly look at declaring bankruptcy as it’s perhaps the best option for both your finances and your psychological well-being.
Whilst there are some serious financial repercussions, bankruptcy isn’t the end of the world and in most cases, it’s the first step to financial freedom. When you’re enduring 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 determine what options you have. While there are many options available to help you in financial hardship, if you’re experiencing any of the above warning signs then chances are that bankruptcy is the best alternative to ensure you and your family can secure a bright future. Regardless, if you’re experiencing financial difficulties, it’s best to contact bankruptcy professionals sooner rather than later. For a confidential discussion about your financial situation, contact Bankruptcy Experts Ipswich on 1300 795 575 or visit www.bankruptcyexpertsipswich.com.au