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

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 individuals around the world end up in this situation every day. People in this scenario have numerous options to recover from their financial troubles, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve possibly seen several 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 ways to recover from financial struggles, 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 option for you? This article will shed some light into bankruptcy to help you decide if bankruptcy is the best option for your specific circumstances.

 

Bankruptcy has some fairly serious financial penalties: a bad credit history, increased difficulty in acquiring loans, and higher interest rates are just some of these. So needless to say, bankruptcy should not be taken lightly. There are an abundance of debt consolidating companies that more than happy to help, which is similar to bankruptcy as all your debts are merged into one. This is typically considered a good alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to determine if bankruptcy is the best solution for you is to seek professional advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in an acute 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 grappling with a mountain of debt, then bankruptcy may well be the best option for you. Even if you have the opportunity 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 condition, as bankruptcy can be a feasible alternative. Declaring bankruptcy will relieve you of these debts and whilst there are financial repercussions, it’s probably the best way to recover in this situation.

 

Making Minimum Repayments Only

 

If you can only afford 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. Without any additional 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 this time can truly amount to significant sums of money. Even though you’ll still be paying off debts with interest after declaring bankruptcy, usually 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 situation 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 are convinced that you aren’t in a situation to settle these debts in an acceptable period of time. This is a clear sign that you should seriously consider declaring bankruptcy as it’s most likely the best solution for both your finances and your emotional well-being.

 

Even though 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 find out what options you have. While there are many alternatives available to assist you in financial hardship, if you’re encountering any of these 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 consult with bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial scenario, contact Bankruptcy Experts Cassowary Coast on 1300 795 575 or visit www.bankruptcyexpertscassowarycoast.com.au