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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 considerably stressful situation and unfortunately, millions of people across the world find themselves in this situation every year. Individuals in this scenario have numerous options to recover from their financial woes, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve possibly seen a number of those debt consolidating companies advertise their services on television for example. In most cases, it can be confusing to try to work out ways to recover from financial problems, and many will file for bankruptcy simply because it appears to be the simplest way of doing so. But how do you know if bankruptcy is the right choice for you? This article will shed some light into bankruptcy to help you evaluate if bankruptcy is the best option for your specific circumstances.

Bankruptcy has some rather severe financial consequences: a bad credit rating, increased difficulty in acquiring loans, and higher interest rates are just a few of these. So it goes without saying, bankruptcy shouldn’t be taken lightly. There are numerous debt consolidating companies that are happy to assist you, which is similar to bankruptcy as all your debts are consolidated into one. This is often considered a practical alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to find out if bankruptcy is the best option for you is to ask for professional advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position 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 experiencing a mountain of debt, then bankruptcy may well be the best alternative for you. Even if youcan manage 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 should think about seeking professional advice about your situation, as bankruptcy can be a desirable alternative. Declaring bankruptcy will relieve you of these debts and though 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 compound aggressively and you should really consider bankruptcy before your financial issues gets worse. With no supplementary income, it can sometimes 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 certainly amount to huge sums of money. Although you’ll still be repaying 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 frequently hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial condition is worsening and you ought 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 feel that you aren’t in a position to repay these debts in a reasonable time frame. This is a clear indication that you should seriously look at filing for bankruptcy as it’s quite possibly the best solution for both your finances and your mental well-being.

Even though there are some serious 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 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 discover what options you have. While there are many options available to help you in financial hardship, if you’re familiar with any of these 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 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 Gosford on 1300 795 575 or visit www.bankruptcyexpertsgosford.com.au

 

By | 2017-11-16T01:42:37+00:00 June 14th, 2017|Article, Bankruptcy, Blog|0 Comments

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