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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Experiencing financial hardship is a very stressful situation and sadly, millions of people around the world find themselves in this situation every day. Individuals in this scenario have numerous options to recover from their financial troubles, and bankruptcy should be considered as a last resort when all other alternatives have been exhausted. You’ve most probably seen a few of those debt consolidating companies promote their services on TV for example. In a lot of cases, it can be overwhelming to try to figure out how to recover from financial difficulties, and many will turn to bankruptcy simply because it appears to be the simplest 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 to help you evaluate if bankruptcy is the best option for your individual circumstances.

Bankruptcy has some pretty serious financial penalties: a bad credit rating, increased difficulty in securing loans, and higher interest rates are just some of these. So needless to say, bankruptcy should never be taken lightly. There are numerous 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 commonly considered a viable alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to learn 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 position is in a dangerous condition and bankruptcy may be the best solution for you.

No Savings

If you don’t have any money in the bank and you’re sustaining a mountain of debt, then bankruptcy may well be the best option for you. Even if you’re able to work a second job to increase your income, will this enable you to recover from your debts in the next five years? If no, then you should think of seeking professional advice about your predicament, as bankruptcy can be a desirable alternative. Filing for bankruptcy will relieve you of these debts and whilst 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 compound aggressively and you should really consider bankruptcy before your financial situation decays further. With no extra income, it can often times take up to 30 years to repay your debts by making minimum repayments only, so all the interest you’ll be paying over these years can truly amount to large sums of money. Whilst you’ll still be paying off debts with interest after declaring bankruptcy, typically you can negotiate better terms on conditions on your debts after declaring bankruptcy.

Debt Collectors Are Calling You

When you’re being continually hassled by debt collectors on the phone and in the mail, it’s an indicator that your financial situation 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 prices to debt collectors because they feel that you aren’t in a situation to settle these debts in a reasonable time frame. This is a clear indicator that you should seriously think about filing for bankruptcy as it’s perhaps the best option for both your finances and your emotional well-being.

Although there are some severe financial consequences, 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 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 encountering financial difficulties, it’s best to get in touch with bankruptcy professionals sooner rather than later. For a confidential discussion about your financial situation, contact Bankruptcy Experts Parramatta on 1300 795 575 or visit www.bankruptcyexpertsparramatta.com.au

By | 2017-10-13T02:19:43+00:00 June 14th, 2017|Bankruptcy, Liquidation|0 Comments

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