Experiencing financial hardship is a very stressful situation and sadly, millions of people throughout the world end up in this position every year. People in this scenario have quite a few options to recover from their financial woes, and bankruptcy should be thought of as a last resort when all other options have been exhausted. You’ve quite possibly seen a few of those debt consolidating companies promote their services on television for example. Often, it can be confusing to try to work out ways to recover from financial dilemmas, and many will declare bankruptcy simply because it appears 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 in order to help you decide if bankruptcy is the best option for your individual circumstances.
Bankruptcy has some pretty serious financial consequences: a bad credit history, increased difficulty in securing loans, and higher interest rates are just a number of these. So needless to say, bankruptcy shouldn’t be taken lightly. There are many debt consolidating businesses that are happy to help, which is similar to bankruptcy as all your debts are combined into one. This is often considered a feasible alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to learn if bankruptcy is the best alternative for you is to seek professional advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in a dangerous condition and bankruptcy may be the best alternative for you.
If you don’t have any money in your bank account and you’re sustaining a mountain of debt, then bankruptcy may well be the best alternative for you. Even if youcan manage to work a second job to increase your cash flow, 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 circumstance, as bankruptcy can be a viable alternative. Filing for bankruptcy will relieve you of these debts and even though there are financial penalties, 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 intensify aggressively and you should really consider bankruptcy before your financial position decays further. With no extra income, it can often 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 certainly amount to large sums of money. Though you’ll still be paying off debts with interest after declaring bankruptcy, generally 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 a sign that your financial scenario 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 settle these debts in a reasonable 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 mental well-being.
Though there are some serious financial repercussions, bankruptcy isn’t the end of the world and in many cases, it’s the first step to financial freedom. When you’re dealing 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 figure out what options you have. While there are many options available to assist you in financial hardship, if you’re experiencing 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 get in touch with bankruptcy professionals sooner rather than later. For a confidential discussion about your financial scenario, contact Bankruptcy Experts Shellharbour on 1300 795 575 or visit www.bankruptcyexpertsshellharbour.com.au