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 pretty stressful situation and sadly, millions of individuals around the world end up in this position each day. People in this situation have numerous options to recover from their financial distress, and bankruptcy should be considered as a last resort when all other alternatives have been exhausted. You’ve quite possibly seen a number of those debt consolidating companies advertise their services on television for example. Often, it can be overwhelming to try to work out an effective way to recover from financial challenges, 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 option for you? This article will shed some light into bankruptcy in order to help you evaluate if bankruptcy is the best option for your specific situation.

Bankruptcy has some rather severe financial penalties: a bad credit report, increased difficulty in securing loans, and higher interest rates are just a couple of these. So it goes without saying, bankruptcy shouldn’t be taken lightly. There are an abundance of debt consolidating companies that more than happy to assist you, which is similar to bankruptcy as all your debts are combined into one. This is usually considered a sensible alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to determine if bankruptcy is the best option for you is to seek reliable advice from bankruptcy experts. In the meantime, however, here are some indications that your financial situation is in a serious 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 have the ability to work a second job to increase your income, will this allow you to recover from your debts in the next 5 years? If no, then you should consider seeking professional advice about your condition, as bankruptcy can be a desirable alternative. Filing for bankruptcy will relieve you of these debts and although 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 intensify rapidly and you should really consider bankruptcy before your financial issues gets worse. With no additional 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 this time can certainly amount to massive sums of money. Although you’ll still be paying off debts with interest after filing for bankruptcy, regularly you can arrange better terms on conditions on your debts after filing for bankruptcy.

Debt Collectors Are Calling You

When you’re being frequently hassled by debt collectors on the telephone 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 heavily discounted rates to debt collectors because they strongly believe that you aren’t in a situation to pay off these debts in an acceptable period of time. This is a clear indication that you should honestly consider declaring bankruptcy as it’s very likely the best solution for both your finances and your psychological well-being.

Although there are some severe financial implications, 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 options 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 prosperous future. Regardless, if you’re experiencing financial difficulties, it’s best to get in touch with bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial situation, contact Bankruptcy Experts Shepparton on 1300 795 575 or visit www.bankruptcyexpertsshepparton.com.au

By | 2017-10-10T06:34:51+00:00 June 15th, 2017|Bankrupt, Liquidation|0 Comments

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