- Jun 14, 2017
Experiencing financial hardship is a considerably stressful situation and unfortunately, millions of people across the globe find themselves in this situation each day. People in this predicament have a number of options to recover from their financial issues, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve most likely seen a few of those debt consolidating companies advertise their services on TV for example. In the majority of cases, it can be overwhelming to try to figure out how to recover from financial challenges, and many will turn to bankruptcy simply because it appears to be the easiest way of doing so. But how do you know if bankruptcy is the right choice for you? This article will shed some light into bankruptcy to help you decide if bankruptcy is the best option for your individual scenario.
Bankruptcy has some fairly severe financial repercussions: a bad credit history, increased difficulty in obtaining loans, and higher interest rates are just a few of these. So needless to say, bankruptcy shouldn’t be taken lightly. There are many debt consolidating businesses that more than happy to help, which is similar to bankruptcy as all your debts are merged into one. This is generally considered a sensible alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to find out if bankruptcy is the best solution for you is to ask for professional advice from bankruptcy experts. In the meantime, however, here are some signs that your financial situation is in an acute condition and bankruptcy may be the best alternative 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 alternative for you. Even if youcan manage to work a second job to increase your cash flow, will this enable you to recover from your debts in the next 5 years? If no, then you should think about seeking professional advice about your position, as bankruptcy can be a viable alternative. Declaring bankruptcy will relieve you of these debts and though there are financial repercussions, 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 quickly and you should really consider bankruptcy before your financial issues decays further. Without any additional 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 certainly amount to considerable sums of money. Although you’ll still be repaying debts with interest after filing for bankruptcy, commonly 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 an indicator that your financial scenario 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 heavily discounted prices to debt collectors because they believe that you aren’t in a situation to pay off these debts in a reasonable time frame. This is a clear indicator that you should honestly look at filing for bankruptcy as it’s most probably the best option for both your finances and your emotional well-being.
Whilst there are some serious 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 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 determine what options you have. While there are many options 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. 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 situation, contact Bankruptcy Experts Cairns on 1300 795 575 or visit www.bankruptcyexpertscairns.com.au