Going through financial hardship is a very stressful situation and sadly, millions of people across the world end up in this position each year. People in this scenario have many options to recover from their financial burdens, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve most probably seen a few of those debt consolidating companies advertise their services on television for example. In a lot of cases, it can be confusing to try to find out ways to recover from financial problems, and many will resort to bankruptcy simply because it seems to be the easiest 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 individual situation.
Bankruptcy has some rather serious financial repercussions: a bad credit rating, increased difficulty in acquiring loans, and higher interest rates are just a number of these. So it goes without saying, bankruptcy should not be taken lightly. There are an abundance of debt consolidating businesses that more than happy to help, which is similar to bankruptcy as all your debts are consolidated into one. This is normally considered a sensible alternative to bankruptcy as the financial penalties aren’t as serious. 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 dangerous condition and bankruptcy may be the best option for you.
If you don’t have any savings in your bank account and you’re grappling with a mountain of debt, then bankruptcy may well be the best solution for you. Even if you have the ability 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 really should think of seeking professional advice about your position, as bankruptcy can be a desirable alternative. Filing for 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 magnify quickly and you should really consider bankruptcy before your condition decays further. 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 truly amount to enormous sums of money. Though you’ll still be repaying debts with interest after declaring bankruptcy, regularly you can negotiate better terms on conditions on your debts after filing for bankruptcy.
Debt Collectors Are Calling You
When you’re being frequently hassled by debt collectors on the phone and in the mail, it’s an indicator that your financial scenario is deteriorating 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 rates to debt collectors because they believe that you aren’t in a position to repay these debts in an acceptable period of time. This is a clear indication that you should honestly think about declaring bankruptcy as it’s perhaps the best option for both your finances and your mental well-being.
Though there are some serious financial consequences, bankruptcy isn’t the end of the world and in most cases, it’s the first step to financial freedom. When you’re experiencing 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 options available to help you in financial hardship, if you’re experiencing 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. Regardless, 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 scenario, contact Bankruptcy Experts Brisbane on 1300 795 575 or visit www.bankruptcyexpertsbrisbane.com.au