Is Bankruptcy My Best Alternative? How To Know If Bankruptcy Is Right For You

Home/Bankrupt, Blog/Is Bankruptcy My Best Alternative? How To Know If Bankruptcy Is Right For You

Is Bankruptcy My Best Alternative? How To Know If Bankruptcy Is Right For You

bankruptcy experts, Bankruptcy Wyong, Bankruptcy Experts Wyong

Experiencing financial hardship is a really stressful situation and sadly, millions of individuals around the world find themselves in this position each 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 options have been exhausted. You’ve quite possibly seen a couple of those debt consolidating businesses offer their services on TV for example. In many cases, it can be overwhelming to try to work out an effective way to recover from financial complications, and many will file for bankruptcy simply because it seems to be the simplest 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 in order to help you determine if bankruptcy is the best option for your personal circumstances.

Bankruptcy has some fairly severe financial repercussions: a bad credit rating, increased difficulty in obtaining loans, and higher interest rates are just a couple of these. So needless to say, bankruptcy should never be taken lightly. There are an abundance of debt consolidating businesses that are happy to help, which is similar to bankruptcy as all your debts are merged into one. This is commonly considered a practical alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to determine if bankruptcy is the best alternative for you is to ask for reliable advice from bankruptcy experts. In the meantime, however, here are some signs that your financial situation is in a dangerous condition and bankruptcy may be the best option for you.

No Savings

If you don’t have any savings in the bank and you’re facing a mountain of debt, then bankruptcy may well be the best solution for you. Even if you have the opportunity to work a second job to increase your earnings, 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 predicament, as bankruptcy can be a desirable alternative. Filing for bankruptcy will relieve you of these debts and although 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 compound rapidly and you should really consider bankruptcy before your financial position decays further. Without any additional income, it can sometimes take up to 30 years to settle your debts by making minimum repayments only, so all the interest you’ll be paying over these years can certainly amount to large sums of money. Although you’ll still be paying off debts with interest after declaring bankruptcy, generally you can negotiate better terms on conditions on your debts after filing for bankruptcy.

Debt Collectors Are Calling You

When you’re being regularly hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial situation is worsening and you need to make some changes. When you’re being contacted by debt collectors, it means that your creditors have sold your debts at heavily discounted rates to debt collectors because they believe that you aren’t in a position to repay these debts in a reasonable time frame. This is a clear sign that you should seriously consider filing for bankruptcy as it’s possibly the best option for both your finances and your mental well-being.

Whilst there are some serious 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 confronting 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 identify what options you have. While there are many options available to help you in financial hardship, if you’re encountering 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 encountering financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion about your financial scenario, contact Bankruptcy Experts Wyong on 1300 795 575 or visit www.bankruptcyexpertswyong.com.au

 

By | 2018-08-01T00:30:03+00:00 June 14th, 2017|Bankrupt, Blog|0 Comments

About the Author: