Is Bankruptcy My Best Alternative? How To Know If Bankruptcy Is Right For You
Going through financial hardship is a very stressful situation and unfortunately, millions of individuals around the world find themselves in this situation each day. People in this scenario have a number of options to recover from their financial issues, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve quite possibly seen several of those debt consolidating businesses advertise their services on TV for example. In many cases, it can be confusing to try to find out ways to recover from financial difficulties, and many will file for 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 circumstances.
Bankruptcy has some fairly serious financial repercussions: a bad credit rating, increased difficulty in securing loans, and higher interest rates are just some of these. So needless to say, bankruptcy should not be taken lightly. There are plenty of debt consolidating companies that are happy to assist you, which is similar to bankruptcy as all your debts are consolidated into one. This is often considered a feasible alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to identify if bankruptcy is the best solution for you is to ask for reliable advice from bankruptcy experts. In the meantime, however, here are some signs that your financial situation is in an acute condition and bankruptcy may be the best solution 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 alternative for you. Even if you are capable to work a second job to increase your income, will this allow you to recover from your debts in the next 5 years? If no, then you really should think of seeking professional advice about your circumstance, as bankruptcy can be a feasible alternative. Filing for 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 magnify aggressively and you should really consider bankruptcy before your financial position gets worse. 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 this time can truly amount to significant sums of money. While you’ll still be repaying 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 regularly hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial condition 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 rates to debt collectors because they are convinced that you aren’t in a situation to settle these debts in an acceptable period of time. This is a clear indicator that you should honestly look at declaring bankruptcy as it’s very likely the best solution for both your finances and your psychological well-being.
Whilst there are some severe 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 experiencing 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 alternatives available to help you in financial hardship, if you’re encountering any of the above warning signs then chances are that bankruptcy is the best alternative to ensure you and your family can secure a prosperous future. In any case, if you’re facing financial difficulties, it’s best to get in touch with bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial situation, contact Bankruptcy Experts Canberra on 1300 795 575 or visit www.bankruptcyexpertscanberra.com.au