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 pretty stressful situation and sadly, millions of people across the world find themselves in this position each day. Individuals in this scenario have various options to recover from their financial problems, and bankruptcy should be regarded as a last resort when all other alternatives have been exhausted. You’ve probably seen a number of those debt consolidating businesses advertise their services on TV for example. In a lot of cases, it can be confusing to try to find out the best way to recover from financial hardships, 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 alternative for you? This article will shed some light into bankruptcy to help you determine if bankruptcy is the best option for your individual situation.

 

Bankruptcy has some fairly serious financial repercussions: a bad credit report, increased difficulty in securing loans, and higher interest rates are just a number of these. So it goes without saying, bankruptcy should not be taken lightly. There are plenty of debt consolidating companies that are happy to help, which is similar to bankruptcy as all your debts are combined into one. This is generally considered a realistic alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to learn 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 option for you.

 

No Savings

 

If you don’t have any money in your bank account and you’re facing a mountain of debt, then bankruptcy may well be the best solution for you. Even if you have the ability 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 really should consider seeking professional advice about your predicament, as bankruptcy can be an attractive alternative. Filing for bankruptcy will relieve you of these debts and even 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 aggressively and you should really consider bankruptcy before your financial issues gets worse. With no extra income, it can often 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 really amount to significant sums of money. Though you’ll still be paying off debts with interest after declaring bankruptcy, normally you can negotiate better terms on conditions on your debts after filing for bankruptcy.

 

Debt Collectors Are Calling You

 

When you’re being continually hassled by debt collectors on the phone and in the mail, it’s a sign that your financial scenario is worsening 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 heavily discounted rates to debt collectors because they strongly believe that you aren’t in a position to repay these debts in an acceptable time frame. This is a clear indication that you should honestly look at declaring bankruptcy as it’s quite likely the best solution for both your finances and your emotional well-being.

 

Although 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 grappling with 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 figure out what options you have. While there are many alternatives available to assist 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 bright future. Regardless, if you’re experiencing financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial circumstances, contact Gold Coast Bankruptcy Centre on 1300 795 575 or visit www.goldcoastbankruptcycentre.com.au

 

By | 2017-06-16T00:10:05+00:00 June 16th, 2017|bankrupt, blog|0 Comments

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