June 14, 2017Comments Closed

Is Bankruptcy My Best Option? How To Know If Bankruptcy Is Right For You

Posted by:admin onJune 14, 2017

Bankruptcy Experts Mount Isa

Experiencing financial hardship is a considerably stressful situation and sadly, millions of individuals across the world end up in this situation every year. Individuals in this situation have a number of options to recover from their financial woes, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve possibly seen a few of those debt consolidating businesses promote their services on TV for example. In many cases, it can be overwhelming to try to find out the best way to recover from financial problems, and many will turn to bankruptcy simply because it seems 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 decide if bankruptcy is the best option for your particular situation.

Bankruptcy has some fairly serious financial penalties: a bad credit history, increased difficulty in securing loans, and higher interest rates are just a couple of these. So needless to say, bankruptcy should not be taken lightly. There are plenty of 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 generally considered a good alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to figure 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 an acute condition and bankruptcy may be the best option for you.

No Savings

If you don’t have any money in your bank and you’re sustaining a mountain of debt, then bankruptcy may well be the best solution 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 consider seeking professional advice about your predicament, as bankruptcy can be a viable alternative. Declaring 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 afford to make the minimum repayments on your debts, then the interest on these debts will magnify aggressively and you should really consider bankruptcy before your financial position decays further. With no supplementary income, it can sometimes 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 certainly amount to huge sums of money. While you’ll still be paying off debts with interest after filing for bankruptcy, typically 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 a sign that your financial position is worsening 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 heavily discounted rates to debt collectors because they feel that you aren’t in a situation to settle these debts in a reasonable period of time. This is a clear indication that you should seriously consider filing for bankruptcy as it’s probably the best option for both your finances and your emotional well-being.

Although 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 confronting 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 figure out what options you have. While there are many options 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 prosperous future. Regardless, if you’re facing financial difficulties, it’s best to contact bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial circumstances, contact Bankruptcy Experts Mount Isa on 1300 795 575 or visit www.bankruptcyexpertsmountisa.com.au

 

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