Experiencing financial hardship is a pretty stressful situation and sadly, millions of individuals across the world end up in this position every day. Individuals in this situation have numerous options to recover from their financial troubles, and bankruptcy should be considered as a last resort when all other options have been exhausted. You’ve possibly seen several of those debt consolidating companies promote their services on TV for example. In a lot of cases, it can be complicated to try to find out ways to recover from financial dilemmas, and many will declare bankruptcy simply because it appears to be the simplest 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 figure out if bankruptcy is the best option for your particular situation.
Bankruptcy has some pretty serious financial consequences: a bad credit history, increased difficulty in obtaining loans, and higher interest rates are just a few of these. So needless to say, bankruptcy should not be taken lightly. There are lots of debt consolidating companies that more than happy to help, which is similar to bankruptcy as all your debts are merged into one. This is typically considered a good alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to determine if bankruptcy is the best option for you is to ask for professional advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in an acute condition and bankruptcy may be the best option 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 option for you. Even if you’re able to work a second job to increase your income, will this allow you to recover from your debts in the next five years? If no, then you really should think about seeking professional advice about your condition, as bankruptcy can be an attractive alternative. Declaring bankruptcy will relieve you of these debts and whilst there are financial repercussions, 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 compound quickly and you should really consider bankruptcy before your financial position decays further. With no 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 these years can truly amount to massive sums of money. Whilst you’ll still be paying off debts with interest after declaring bankruptcy, regularly you can negotiate better terms on conditions on your debts after filing for bankruptcy.
Debt Collectors Are Calling You
When you’re being continually hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial situation is deteriorating 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 highly discounted rates to debt collectors because they strongly believe that you aren’t in a situation to settle these debts in a reasonable period of time. This is a clear indicator that you should seriously look at declaring bankruptcy as it’s probably the best option for both your finances and your mental well-being.
Though there are some serious 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 discover what options you have. While there are many alternatives available to assist 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. In any case, if you’re facing financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion about your financial scenario, contact Bankruptcy Experts Kalgoorlie on 1300 795 575 or visit www.bankruptcyexpertskalgoorlie.com.au