Going through financial hardship is a really stressful situation and unfortunately, millions of individuals around the world find themselves in this position each year. People in this predicament have quite a few options to recover from their financial woes, and bankruptcy should be considered as a last resort when all other alternatives have been exhausted. You’ve quite possibly seen a couple of those debt consolidating businesses offer their services on television for example. In a lot of cases, it can be overwhelming to try to find out an effective way to recover from financial problems, and many will declare bankruptcy simply because it seems 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 implications: a bad credit report, increased difficulty in acquiring loans, and higher interest rates are just several of these. So needless to say, bankruptcy should not be taken lightly. There are loads of debt consolidating businesses that more than happy to assist you, which is similar to bankruptcy as all your debts are consolidated into one. This is typically considered a sensible alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to find out if bankruptcy is the best option for you is to seek professional advice from bankruptcy experts. In the meantime, however, here are some indications that your financial situation is in a serious condition and bankruptcy may be the best option for you.
If you don’t have any money in your bank and you’re sustaining a mountain of debt, then bankruptcy may well be the best alternative for you. Even if you have the capacity to work a second job to increase your earnings, will this allow you to recover from your debts in the next five years? If no, then you should look into seeking professional advice about your situation, as bankruptcy can be a desirable alternative. Declaring bankruptcy will relieve you of these debts and while there are financial penalties, 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 financial situation gets worse. Without any supplementary 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 this time can really amount to significant sums of money. Even though you’ll still be paying off debts with interest after declaring bankruptcy, regularly you can negotiate 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 scenario 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 highly discounted prices to debt collectors because they are convinced that you aren’t in a position to pay off these debts in a reasonable period of time. This is a clear indication that you should honestly look at declaring bankruptcy as it’s quite likely the best solution for both your finances and your emotional well-being.
Though 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 facing 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 identify what options you have. While there are many options available to assist you in financial hardship, if you’re familiar with 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 facing financial difficulties, it’s best to consult with bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial scenario, contact Bankruptcy Experts Fremantle on 1300 795 575 or visit www.bankruptcyexpertsfremantle.com.au