Experiencing financial hardship is a considerably stressful situation and sadly, millions of individuals across the world find themselves in this situation every day. People in this situation have various 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 probably seen a couple of those debt consolidating businesses advertise their services on television for example. In many cases, it can be overwhelming to try to work out ways to recover from financial challenges, and many will file for bankruptcy simply because it appears to be the easiest way of doing so. But how do you know if bankruptcy is the right choice for you? This article will shed some light into bankruptcy in order to help you decide if bankruptcy is the best option for your particular scenario.
Bankruptcy has some fairly serious financial repercussions: a bad credit history, increased difficulty in securing loans, and higher interest rates are just some of these. So it goes without saying, bankruptcy should never be taken lightly. There are numerous debt consolidating companies that more than happy to help, which is similar to bankruptcy as all your debts are consolidated into one. This is often considered a practical alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to learn if bankruptcy is the best solution for you is to seek professional advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in a dangerous condition and bankruptcy may be the best option 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 option for you. Even if you have the ability 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 think about seeking professional advice about your situation, as bankruptcy can be a viable alternative. Filing for bankruptcy will relieve you of these debts and though there are financial repercussions, 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 magnify quickly and you should really consider bankruptcy before your financial situation gets worse. Without any supplementary income, it can often 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 certainly amount to considerable sums of money. While you’ll still be paying off debts with interest after filing for bankruptcy, usually you can negotiate better terms on conditions on your debts after declaring bankruptcy.
Debt Collectors Are Calling You
When you’re being constantly hassled by debt collectors on the phone and in the mail, it’s an indicator that your financial situation is worsening and you will need to make some changes. When you’re being contacted by debt collectors, it means that your creditors have sold your debts at highly discounted prices to debt collectors because they are convinced that you aren’t in a position to pay off these debts in an acceptable time frame. This is a clear sign that you should honestly consider declaring bankruptcy as it’s quite likely the best solution for both your finances and your emotional well-being.
Although 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 facing 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 options 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 bright future. In any case, if you’re facing financial difficulties, it’s best to contact bankruptcy professionals sooner rather than later. For a confidential discussion regarding your financial circumstances, contact Bankruptcy Experts Geraldton on 1300 795 575 or visit www.bankruptcyexpertsgeraldton.com.au