Going through financial hardship is a very stressful situation and unfortunately, millions of people across the globe end up in this position every day. Individuals in this predicament have quite a few 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 possibly seen a number of those debt consolidating businesses promote their services on TV for example. In a lot of cases, it can be difficult to try to find out how to recover from financial challenges, and many will resort 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 evaluate if bankruptcy is the best option for your particular circumstances.
Bankruptcy has some fairly serious financial penalties: a bad credit history, increased difficulty in acquiring loans, and higher interest rates are just a couple of these. So it goes without saying, bankruptcy should never 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 merged into one. This is normally considered a viable alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to identify if bankruptcy is the best option for you is to seek professional 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 solution for you.
If you don’t have any money in your bank account and you’re confronting 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 income, will this enable you to recover from your debts in the next 5 years? If no, then you should think of seeking professional advice about your position, as bankruptcy can be a feasible alternative. Filing for bankruptcy will relieve you of these debts and though 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 intensify aggressively and you should really consider bankruptcy before your situation worsens. Without any additional income, it can sometimes take up to 30 years to repay 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. Though 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 constantly hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial condition 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 highly discounted rates to debt collectors because they strongly believe that you aren’t in a situation to repay these debts in a reasonable time frame. This is a clear indicator that you should honestly think about declaring bankruptcy as it’s most likely the best solution for both your finances and your psychological well-being.
Although there are some serious financial implications, bankruptcy isn’t the end of the world and in many 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 help you in financial hardship, if you’re encountering 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 experiencing financial difficulties, it’s best to get in touch with bankruptcy professionals sooner rather than later. For a confidential discussion regarding your financial scenario, contact Bankruptcy Experts Adelaide on 1300 795 575 or visit www.bankruptcyexpertsadelaide.com.au