|June 13, 2017||Comments Closed|
Going through financial hardship is a really stressful situation and unfortunately, millions of individuals across the world find themselves in this position every year. Individuals in this situation have various options to recover from their financial burdens, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve most probably seen a couple of those debt consolidating businesses promote their services on television for example. In the majority of cases, it can be difficult to try to find out ways to recover from financial dilemmas, 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 determine if bankruptcy is the best option for your individual situation.
Bankruptcy has some fairly severe financial penalties: a bad credit report, increased difficulty in acquiring loans, and higher interest rates are just some of these. So needless to say, bankruptcy should never be taken lightly. There are loads of debt consolidating businesses that more than happy to assist you, 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 serious. But the best way to find out if bankruptcy is the best alternative for you is to ask for specialist advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in an acute condition and bankruptcy may be the best solution for you.
If you don’t have any savings in your bank account and you’re facing a mountain of debt, then bankruptcy may well be the best solution for you. Even if you have the capacity to work a second job to increase your income, will this enable you to recover from your debts in the next five years? If no, then you really should look into seeking professional advice about your situation, as bankruptcy can be a desirable alternative. Declaring bankruptcy will relieve you of these debts and while 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 magnify aggressively and you should really consider bankruptcy before your condition worsens. Without any additional income, it can sometimes take up to 30 years to pay off your debts by making minimum repayments only, so all the interest you’ll be paying over these years can truly amount to enormous sums of money. Whilst you’ll still be paying off debts with interest after filing for bankruptcy, generally you can arrange better terms on conditions on your debts after declaring 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 position is deteriorating 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 highly discounted rates to debt collectors because they strongly believe that you aren’t in a situation to settle these debts in an acceptable time frame. This is a clear indicator that you should seriously think about declaring bankruptcy as it’s very likely the best option for both your finances and your psychological well-being.
Even though there are some severe financial consequences, bankruptcy isn’t the end of the world and in most cases, it’s the first step to financial freedom. When you’re encountering 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 experiencing 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. Regardless, if you’re facing 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 Bendigo on 1300 795 575 or visit www.bankruptcyexpertsbendigo.com.au