Going through financial hardship is a really stressful situation and sadly, millions of people around the world end up in this position every day. Individuals in this predicament have numerous options to recover from their financial distress, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve possibly seen a few of those debt consolidating companies offer their services on television for example. In a lot of cases, it can be overwhelming to try to figure out how to recover from financial dilemmas, and many will declare bankruptcy simply because it seems to be the simplest way of doing so. But how do you know if bankruptcy is the right choice for you? This article will shed some light into bankruptcy to help you determine if bankruptcy is the best option for your specific circumstances.
Bankruptcy has some rather severe financial consequences: a bad credit history, increased difficulty in acquiring loans, and higher interest rates are just a number of these. So it goes without saying, bankruptcy shouldn’t 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 usually 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 option for you is to ask for reliable 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 money in your bank account and you’re confronting a mountain of debt, then bankruptcy may well be the best solution for you. Even if you’re able 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 should consider seeking professional advice about your situation, as bankruptcy can be a feasible alternative. Filing for bankruptcy will relieve you of these debts and though 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 compound rapidly and you should really consider bankruptcy before your financial position decays further. 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 truly amount to considerable sums of money. Though you’ll still be paying off debts with interest after declaring bankruptcy, regularly 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 condition is deteriorating and you 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 prices to debt collectors because they strongly believe that you aren’t in a situation to pay off these debts in a reasonable time frame. This is a clear indication that you should seriously look at filing for bankruptcy as it’s most likely the best solution for both your finances and your emotional well-being.
While there are some serious 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 identify what options you have. While there are many alternatives 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. 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 about your financial situation, contact Bankruptcy Experts Coffs Harbour on 1300 795 575 or visit www.bankruptcyexpertscoffsharbour.com.au