Going through financial hardship is a very stressful situation and unfortunately, millions of individuals across the globe end up in this position every year. Individuals in this situation have quite a few options to recover from their financial problems, and bankruptcy should be thought of as a last resort when all other options have been exhausted. You’ve most probably seen a couple of those debt consolidating companies offer their services on television for example. In most cases, it can be difficult to try to figure out ways to recover from financial troubles, and many will turn to bankruptcy simply because it seems the easiest way of doing so. But how do you know if bankruptcy is the right alternative for you? This article will shed some light into bankruptcy to help you figure out if bankruptcy is the best option for your specific circumstances.
Bankruptcy has some rather serious financial implications: a bad credit history, increased difficulty in acquiring loans, and higher interest rates are just several of these. So needless to say, bankruptcy shouldn’t be taken lightly. There are an abundance of debt consolidating companies that are happy to assist you, which is similar to bankruptcy as all your debts are consolidated into one. This is normally considered a sensible alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to find out if bankruptcy is the best option for you is to seek specialist advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in an acute 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 alternative for you. Even if you are capable to work a second job to increase your income, will this allow you to recover from your debts in the next five years? If no, then you really should look into seeking professional advice about your scenario, as bankruptcy can be a viable alternative. Declaring 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 rapidly and you should really consider bankruptcy before your situation decays further. Without any extra 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 significant sums of money. While you’ll still be repaying debts with interest after declaring bankruptcy, commonly you can negotiate better terms on conditions on your debts after filing for bankruptcy.
Debt Collectors Are Calling You
When you’re being constantly hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial scenario 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 heavily discounted prices to debt collectors because they are convinced that you aren’t in a situation to pay off these debts in an acceptable period of time. This is a clear sign that you should honestly think about filing for bankruptcy as it’s very likely the best solution for both your finances and your emotional well-being.
Even though 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 enduring 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 find out what options you have. While there are many options available to help you in financial hardship, if you’re familiar with 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 situation, contact Bankruptcy Experts Tennant Creek on 1300 795 575 or visit www.bankruptcyexpertstennantcreek.com.au