Is Bankruptcy My Best Option? How To Know If Bankruptcy Is Right For You
Experiencing financial hardship is a particularly stressful situation and sadly, millions of people across the globe find themselves in this position every day. Individuals in this situation have various options to recover from their financial burdens, and bankruptcy should be regarded 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 TV for example. In most cases, it can be confusing to try to find out ways to recover from financial dilemmas, and many will file for bankruptcy simply because it seems 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 figure out if bankruptcy is the best option for your personal scenario.
Bankruptcy has some rather severe financial penalties: a bad credit report, increased difficulty in obtaining loans, and higher interest rates are just a few of these. So it goes without saying, bankruptcy should not be taken lightly. There are lots of debt consolidating companies that more than happy to help, which is similar to bankruptcy as all your debts are merged into one. This is usually considered a good alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to determine if bankruptcy is the best option 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 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 sustaining a mountain of debt, then bankruptcy may well be the best option for you. Even if you have the ability to work a second job to increase your earnings, will this enable you to recover from your debts in the next 5 years? If no, then you really should think about seeking professional advice about your condition, as bankruptcy can be a desirable alternative. Filing for bankruptcy will relieve you of these debts and while 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 compound quickly and you should really consider bankruptcy before your financial position gets worse. Without any supplementary income, it can often times 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 really amount to significant sums of money. Even though you’ll still be paying off 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 consistently hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial position 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 highly discounted prices to debt collectors because they feel that you aren’t in a position to pay off these debts in an acceptable period of time. This is a clear indication that you should seriously think about filing for bankruptcy as it’s most likely the best option for both your finances and your psychological well-being.
While there are some severe 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 encountering 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 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 prosperous 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 concerning your financial scenario, contact Bankruptcy Experts Geelong on 1300 795 575 or visit www.bankruptcyexpertsgeelong.com.au