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

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

Experiencing financial hardship is a very stressful situation and sadly, millions of individuals around the world find themselves in this position each day. People in this predicament have quite a few options to recover from their financial burdens, and bankruptcy should be considered as a last resort when all other options 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 the best way to recover from financial problems, and many will file for bankruptcy simply because it seems the simplest 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 in order to help you evaluate if bankruptcy is the best option for your personal situation.

Bankruptcy has some fairly serious financial penalties: a bad credit rating, increased difficulty in obtaining loans, and higher interest rates are just some of these. So it goes without saying, bankruptcy shouldn’t be taken lightly. There are a lot of debt consolidating companies that are 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 figure out if bankruptcy is the best solution for you is to seek specialist advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position 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 experiencing a mountain of debt, then bankruptcy may well be the best option for you. Even if you have the ability to work a second job to increase your income, will this allow you to recover from your debts in the next five years? If no, then you really should think about seeking professional advice about your position, as bankruptcy can be a desirable alternative. Filing for bankruptcy will relieve you of these debts and even though there are financial repercussions, 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 aggressively and you should really consider bankruptcy before your condition decays further. Without any 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 these years can truly amount to significant sums of money. Even though you’ll still be paying off debts with interest after filing for bankruptcy, commonly you can arrange better terms on conditions on your debts after filing for 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 scenario 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 highly discounted prices to debt collectors because they are convinced that you aren’t in a position to pay off these debts in a reasonable time frame. This is a clear indicator that you should seriously think about filing for bankruptcy as it’s quite likely the best solution for both your finances and your psychological well-being.

While 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 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 find out 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 prosperous future. In any case, 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 situation, contact Bankruptcy Experts Mackay on 1300 795 575 or visit Bankruptcy Mackay

By | 2018-07-05T07:19:57+00:00 June 14, 2017|Article, bankruptcy, blog|