Experiencing financial hardship is a considerably stressful situation and sadly, millions of individuals across the globe find themselves in this position each day. People in this scenario have a number of options to recover from their financial problems, and bankruptcy should be considered as a last resort when all other options have been exhausted. You’ve possibly seen a number of those debt consolidating companies offer their services on TV for example. In a lot of cases, it can be complicated to try to figure out an effective way to recover from financial dilemmas, and many will resort to 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 to help you decide if bankruptcy is the best option for your specific scenario.
Bankruptcy has some fairly severe financial penalties: a bad credit history, increased difficulty in acquiring loans, and higher interest rates are just a couple of these. So needless to say, bankruptcy shouldn’t be taken lightly. There are a number 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 generally considered a feasible alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to identify if bankruptcy is the best alternative for you is to seek specialist advice from bankruptcy experts. In the meantime, however, here are some indications that your financial situation is in a serious condition and bankruptcy may be the best solution for you.
If you don’t have any money in your bank and you’re experiencing 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 cash flow, will this allow you to recover from your debts in the next five years? If no, then you should think about seeking professional advice about your condition, as bankruptcy can be a viable alternative. Declaring bankruptcy will relieve you of these debts and whilst 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 quickly and you should really consider bankruptcy before your financial situation worsens. With no 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 this time can certainly amount to significant sums of money. While you’ll still be paying off debts with interest after filing for bankruptcy, regularly 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 a sign that your financial situation 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 heavily discounted prices to debt collectors because they strongly believe 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 consider declaring bankruptcy as it’s quite likely the best solution for both your finances and your psychological well-being.
Whilst there are some serious 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 being confronted by 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 alternatives available to assist you in financial hardship, if you’re familiar with 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. 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 about your financial situation, contact Bankruptcy Experts Dubbo on 1300 795 575 or visit www.bankruptcyexpertsdubbo.com.au