Is Bankruptcy My Best Alternative? How To Know If Bankruptcy Is Right For You
Experiencing financial hardship is a pretty stressful situation and sadly, millions of people throughout the world end up in this position each year. Individuals in this scenario have quite a few options to recover from their financial problems, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve quite possibly seen some of those debt consolidating companies offer their services on TV for example. In many cases, it can be overwhelming to try to work out ways to recover from financial complications, and many will resort to bankruptcy simply because it seems to be the easiest 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 to help you determine if bankruptcy is the best option for your individual situation.
Bankruptcy has some pretty serious financial implications: a bad credit report, increased difficulty in obtaining loans, and higher interest rates are just a couple of these. So needless to say, bankruptcy should never be taken lightly. There are a lot of debt consolidating companies that are happy to help, which is similar to bankruptcy as all your debts are merged into one. This is commonly considered a feasible alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to determine if bankruptcy is the best alternative 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 dangerous condition and bankruptcy may be the best solution for you.
If you don’t have any savings in the bank and you’re facing a mountain of debt, then bankruptcy may well be the best alternative for you. Even if you have the opportunity to work a second job to increase your income, will this enable you to recover from your debts in the next 5 years? If no, then you really should think about seeking professional advice about your scenario, as bankruptcy can be a desirable alternative. Declaring bankruptcy will relieve you of these debts and whilst 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 rapidly and you should really consider bankruptcy before your financial position worsens. With no additional income, it can often times take up to 30 years to pay off 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, typically you can negotiate better terms on conditions on your debts after filing for bankruptcy.
Debt Collectors Are Calling You
When you’re being constantly hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial scenario is deteriorating and you have 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 situation to settle these debts in a reasonable time frame. This is a clear indication that you should seriously look at filing for bankruptcy as it’s likely the best solution for both your finances and your emotional well-being.
Whilst there are some severe financial implications, bankruptcy isn’t the end of the world and in many cases, it’s the first step to financial freedom. When you’re being confronted by 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 discover what options you have. While there are many alternatives 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 bright future. Regardless, if you’re encountering financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion about your financial circumstances, contact Bankruptcy Experts Tamworth on 1300 795 575 or visit www.bankruptcyexpertstamworth.com.au