Going through financial hardship is a really stressful situation and unfortunately, millions of people across the globe end up in this position each day. People in this predicament have quite a few options to recover from their financial woes, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve most probably seen a number of those debt consolidating companies offer their services on TV for example. Often, it can be confusing to try to find out an effective way to recover from financial challenges, and many will file for bankruptcy simply because it seems to be the simplest 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 specific situation.
Bankruptcy has some fairly serious financial consequences: a bad credit report, increased difficulty in obtaining loans, and higher interest rates are just a number of these. So it goes without saying, bankruptcy should not be taken lightly. There are loads of debt consolidating businesses that more than happy to help, which is similar to bankruptcy as all your debts are combined into one. This is normally considered a realistic 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 ask for reliable advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in a serious condition and bankruptcy may be the best alternative for you.
If you don’t have any savings in the bank and you’re confronting a mountain of debt, then bankruptcy may well be the best solution for you. Even if you have the opportunity to work a second job to increase your cash flow, will this enable you to recover from your debts in the next five years? If no, then you really should consider seeking professional advice about your circumstance, as bankruptcy can be a desirable alternative. Filing for 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 afford to make the minimum repayments on your debts, then the interest on these debts will intensify rapidly and you should really consider bankruptcy before your situation gets worse. With no supplementary income, it can sometimes take up to 30 years to settle your debts by making minimum repayments only, so all the interest you’ll be paying over these years can certainly amount to enormous sums of money. Whilst you’ll still be paying off debts with interest after declaring bankruptcy, normally 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 worsening 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 prices to debt collectors because they feel that you aren’t in a situation to pay off these debts in an acceptable period of time. This is a clear indicator that you should seriously think about declaring bankruptcy as it’s perhaps the best option 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 most 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 figure out 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. In any case, if you’re experiencing 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 Port Stephens on 1300 795 575 or visit www.bankruptcyexpertsportstephens.com.au