Is Bankruptcy My Best Alternative? How To Know If Bankruptcy Is Right For You
Going through financial hardship is a pretty stressful situation and unfortunately, millions of individuals across the globe end up in this situation every day. Individuals in this scenario have various options to recover from their financial issues, and bankruptcy should be considered as a last resort when all other alternatives have been exhausted. You’ve possibly seen a few of those debt consolidating companies promote their services on television for example. Often, it can be complicated to try to work out the best way to recover from financial struggles, and many will resort to bankruptcy simply because it seems 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 to help you figure out if bankruptcy is the best option for your particular circumstances.
Bankruptcy has some pretty serious financial penalties: a bad credit rating, increased difficulty in obtaining loans, and higher interest rates are just several of these. So needless to say, bankruptcy should never be taken lightly. There are plenty of debt consolidating businesses that are happy to help, which is similar to bankruptcy as all your debts are merged into one. This is often considered a sensible alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to figure out if bankruptcy is the best alternative for you is to ask for professional advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in a critical condition and bankruptcy may be the best alternative for you.
If you don’t have any savings in the bank and you’re grappling with 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 earnings, will this allow 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 while 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 magnify rapidly and you should really consider bankruptcy before your situation decays further. Without any supplementary income, it can often times take up to 30 years to settle your debts by making minimum repayments only, so all the interest you’ll be paying over this time can certainly amount to considerable sums of money. Whilst you’ll still be paying off debts with interest after filing for 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 persistently hassled by debt collectors on the phone and in the mail, it’s an indicator that your financial scenario is worsening 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 feel that you aren’t in a situation to pay off these debts in an acceptable time frame. This is a clear indication that you should honestly look at declaring bankruptcy as it’s most likely the best option for both your finances and your mental well-being.
While 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 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 figure out 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 experiencing financial difficulties, it’s best to consult with bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial situation, contact Bankruptcy Experts Bunbury on 1300 795 575 or visit www.bankruptcyexpertsbunbury.com.au