Going through financial hardship is a pretty stressful situation and unfortunately, millions of individuals around the world find themselves in this situation each year. Individuals in this situation have various options to recover from their financial troubles, and bankruptcy should be considered as a last resort when all other options have been exhausted. You’ve probably seen a couple of those debt consolidating businesses advertise their services on television for example. In the majority of cases, it can be difficult to try to figure out the best way to recover from financial complications, and many will declare bankruptcy simply because it appears to be the simplest 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 personal scenario.
Bankruptcy has some fairly severe financial consequences: a bad credit rating, increased difficulty in obtaining loans, and higher interest rates are just a number of these. So it goes without saying, bankruptcy should not be taken lightly. There are many debt consolidating companies that more than happy to assist you, which is similar to bankruptcy as all your debts are merged into one. This is often considered a realistic alternative to bankruptcy as the financial penalties aren’t as extreme. 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 situation is in a critical condition and bankruptcy may be the best alternative for you.
If you don’t have any money in your bank account and you’re grappling with a mountain of debt, then bankruptcy may well be the best alternative for you. Even if you’re able 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 consider seeking professional advice about your scenario, as bankruptcy can be a feasible alternative. Filing for bankruptcy will relieve you of these debts and while there are financial repercussions, 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 rapidly and you should really consider bankruptcy before your financial situation worsens. Without any additional 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 really amount to enormous sums of money. Whilst you’ll still be repaying 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 regularly hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial situation is deteriorating 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 strongly believe that you aren’t in a situation to repay these debts in an acceptable period of time. This is a clear indicator that you should honestly think about filing for bankruptcy as it’s perhaps the best solution for both your finances and your mental well-being.
Even though there are some serious financial repercussions, bankruptcy isn’t the end of the world and in many 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 identify what options you have. While there are many options available to help 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 get in touch with bankruptcy professionals sooner rather than later. For a confidential discussion regarding your financial circumstances, contact Bankruptcy Experts Gold Coast on 1300 879 867 or visit www.bankruptcyexpertsgoldcoast.com.au