June 9, 2017 0

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

Posted by:Charles Bosse onJune 9, 2017

Declaring Bankruptcy,Bankruptcy Advice,Bankruptcy Adelaide

Going through financial hardship is a pretty stressful situation and unfortunately, millions of people across the world find themselves in this situation each year. People in this situation have numerous options to recover from their financial woes, and bankruptcy should be considered as a last resort when all other alternatives have been exhausted. You’ve most probably seen some of those debt consolidating businesses advertise their services on TV for example. In the majority of cases, it can be complicated to try to work out the best way to recover from financial problems, and many will file for bankruptcy simply because it seems the easiest 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 decide if bankruptcy is the best option for your specific circumstances.

Bankruptcy has some rather serious financial consequences: a bad credit report, increased difficulty in acquiring loans, and higher interest rates are just several of these. So needless to say, bankruptcy should never be taken lightly. There are many debt consolidating companies that more than happy to help, which is similar to bankruptcy as all your debts are combined into one. This is commonly considered a viable alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to identify if bankruptcy is the best alternative for you is to seek specialist advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in a dangerous condition and bankruptcy may be the best option for you.

No Savings

If you don’t have any savings in your bank account and you’re confronting a mountain of debt, then bankruptcy may well be the best solution for you. Even if you’re able to work a second job to increase your cash flow, will this enable you to recover from your debts in the next 5 years? If no, then you really should look into seeking professional advice about your scenario, as bankruptcy can be a desirable alternative. Declaring bankruptcy will relieve you of these debts and although there are financial consequences, 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 aggressively and you should really consider bankruptcy before your condition gets worse. With no extra income, it can often take up to 30 years to pay off your debts by making minimum repayments only, so all the interest you’ll be paying over these years can truly amount to huge sums of money. Although you’ll still be paying off debts with interest after filing for bankruptcy, usually you can arrange better terms on conditions on your debts after declaring bankruptcy.

Debt Collectors Are Calling You

When you’re being persistently hassled by debt collectors on the phone and in the mail, it’s an indicator that your financial position 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 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 indication that you should honestly look at declaring bankruptcy as it’s likely the best option for both your finances and your psychological well-being.

Although there are some severe financial repercussions, bankruptcy isn’t the end of the world and in many cases, it’s the first step to financial freedom. When you’re facing 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 identify 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 bright future. In any case, if you’re encountering financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion about your financial situation, contact Fresh Start Solutions Adelaide on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-adelaide

 

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