Going through financial hardship is a considerably stressful situation and sadly, millions of people across the world end up in this situation every day. People in this predicament have various options to recover from their financial problems, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve probably seen some of those debt consolidating businesses offer their services on television for example. In a lot of cases, it can be confusing to try to figure out an effective way to recover from financial challenges, 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 to help you determine if bankruptcy is the best option for your personal situation.
Bankruptcy has some pretty severe financial implications: a bad credit history, increased difficulty in acquiring loans, and higher interest rates are just some of these. So it goes without saying, bankruptcy should never be taken lightly. There are lots of debt consolidating companies that are happy to assist you, which is similar to bankruptcy as all your debts are combined into one. This is normally considered a good alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to find out if bankruptcy is the best solution for you is to ask for reliable advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position 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 option for you. Even if you are capable to work a second job to increase your cash flow, will this allow you to recover from your debts in the next 5 years? If no, then you should look into seeking professional advice about your circumstance, as bankruptcy can be an attractive alternative. Declaring bankruptcy will relieve you of these debts and while there are financial consequences, 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 compound quickly and you should really consider bankruptcy before your condition decays further. With no additional income, it can sometimes take up to 30 years to repay your debts by making minimum repayments only, so all the interest you’ll be paying over these years can certainly amount to huge sums of money. Even though you’ll still be repaying debts with interest after declaring bankruptcy, usually you can negotiate better terms on conditions on your debts after declaring bankruptcy.
Debt Collectors Are Calling You
When you’re being persistently hassled by debt collectors on the phone and in the mail, it’s an indicator that your financial position is deteriorating 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 are convinced that you aren’t in a position to pay off these debts in an acceptable period of time. This is a clear sign that you should seriously look at filing for bankruptcy as it’s likely the best solution for both your finances and your mental well-being.
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 discover what options you have. While there are many alternatives available to assist 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 consult with bankruptcy professionals sooner rather than later. For a confidential discussion about your financial circumstances, contact Bankruptcy Experts Townsville on 1300 795 575 or visit www.bankruptcyexpertstownsville.com.au