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

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Going through financial hardship is a very stressful situation and sadly, millions of people around the world end up in this position each year. Individuals in this scenario have quite a few options to recover from their financial problems, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve most likely seen some of those debt consolidating businesses promote their services on TV for example. In most cases, it can be overwhelming to try to find out an effective way to recover from financial struggles, and many will file for bankruptcy simply because it seems the easiest 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 in order to help you decide if bankruptcy is the best option for your specific scenario.

Bankruptcy has some rather serious financial penalties: a bad credit report, increased difficulty in obtaining loans, and higher interest rates are just a few of these. So needless to say, bankruptcy should never be taken lightly. There are numerous debt consolidating companies that are happy to help, which is similar to bankruptcy as all your debts are merged into one. This is normally considered a realistic alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to identify if bankruptcy is the best solution for you is to seek reliable 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 option for you.

No Savings

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 alternative for you. Even if you’re able to work a second job to increase your cash flow, will this allow you to recover from your debts in the next five years? If no, then you really should look into seeking professional advice about your scenario, as bankruptcy can be an attractive alternative. Declaring 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 magnify rapidly and you should really consider bankruptcy before your condition decays further. With no 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 these years can certainly amount to massive sums of money. While you’ll still be paying off debts with interest after declaring bankruptcy, usually you can arrange better terms on conditions on your debts after filing for bankruptcy.

Debt Collectors Are Calling You

When you’re being persistently hassled by debt collectors on the phone 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 highly discounted rates to debt collectors because they strongly believe that you aren’t in a situation to pay off these debts in a reasonable time frame. This is a clear indication that you should seriously look at declaring bankruptcy as it’s quite likely the best solution for both your finances and your emotional well-being.

 

Even though there are some severe 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 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 identify what options you have. While there are many alternatives available to help you in financial hardship, if you’re experiencing 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 encountering financial difficulties, it’s best to consult with bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial situation, contact Bankruptcy Experts Frankston on 1300 795 575 or visit www.bankruptcyexpertsfrankston.com.au

By | 2017-10-11T03:22:08+00:00 June 14th, 2017|Bankruptcy, Liquidation|0 Comments

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