Going through financial hardship is a really stressful situation and sadly, millions of individuals across the globe find themselves in this position every day. People in this situation have various options to recover from their financial distress, and bankruptcy should be thought of as a last resort when all other options have been exhausted. You’ve most likely seen a few of those debt consolidating companies promote their services on TV for example. Often, it can be overwhelming to try to find out how to recover from financial dilemmas, 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 particular circumstances.
Bankruptcy has some rather serious financial repercussions: a bad credit report, increased difficulty in obtaining loans, and higher interest rates are just a number of these. So needless to say, bankruptcy should not be taken lightly. There are a number of debt consolidating businesses that are happy to help, which is similar to bankruptcy as all your debts are combined into one. This is usually considered a practical alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to learn if bankruptcy is the best alternative for you is to seek professional advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in an acute condition and bankruptcy may be the best alternative 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 youcan manage to work a second job to increase your income, will this enable you to recover from your debts in the next five years? If no, then you really should think about seeking professional advice about your circumstance, as bankruptcy can be a viable alternative. Filing for bankruptcy will relieve you of these debts and whilst 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 intensify quickly and you should really consider bankruptcy before your financial situation 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 large sums of money. Although you’ll still be repaying debts with interest after declaring bankruptcy, generally you can arrange better terms on conditions on your debts after filing for bankruptcy.
Debt Collectors Are Calling You
When you’re being continually hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial scenario is deteriorating and you have 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 feel that you aren’t in a situation to repay these debts in a reasonable period of time. This is a clear sign that you should honestly think about filing for bankruptcy as it’s most likely the best solution for both your finances and your mental well-being.
Though there are some severe 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 enduring 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 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 bright future. In any case, if you’re experiencing financial difficulties, it’s best to contact bankruptcy professionals sooner rather than later. For a confidential discussion regarding your financial situation, contact Bankruptcy Experts Lismore on 1300 795 575 or visit www.bankruptcyexpertslismore.com.au