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 Gold Coast,Bankruptcy Advice

Experiencing financial hardship is a pretty stressful situation and sadly, millions of individuals around the world find themselves in this position every year. Individuals in this scenario have many options to recover from their financial troubles, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve most likely seen a couple of those debt consolidating businesses advertise their services on television for example. In the majority of cases, it can be complicated to try to figure out the best way to recover from financial hardships, and many will turn to bankruptcy simply because it seems to be 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 determine if bankruptcy is the best option for your specific scenario.

Bankruptcy has some fairly severe financial implications: a bad credit rating, increased difficulty in obtaining loans, and higher interest rates are just several of these. So it goes without saying, bankruptcy should not be taken lightly. There are loads of debt consolidating businesses that more than happy to help, which is similar to bankruptcy as all your debts are combined into one. This is generally considered a viable alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to find out if bankruptcy is the best alternative 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 dangerous condition and bankruptcy may be the best option for you.

No Savings

If you don’t have any money in your bank and you’re facing a mountain of debt, then bankruptcy may well be the best alternative for you. Even if you are capable to work a second job to increase your earnings, will this enable you to recover from your debts in the next 5 years? If no, then you really should think about seeking professional advice about your situation, as bankruptcy can be an attractive alternative. Declaring bankruptcy will relieve you of these debts and whilst 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 quickly and you should really consider bankruptcy before your financial position worsens. With no supplementary 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 these years can really amount to massive sums of money. Although you’ll still be paying off debts with interest after declaring bankruptcy, usually you can negotiate better terms on conditions on your debts after declaring bankruptcy.

Debt Collectors Are Calling You

When you’re being regularly hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial situation is deteriorating 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 highly discounted rates to debt collectors because they believe that you aren’t in a situation to settle these debts in an acceptable time frame. This is a clear indication that you should honestly consider filing for bankruptcy as it’s likely the best solution for both your finances and your psychological well-being.

Even though there are some severe financial consequences, bankruptcy isn’t the end of the world and in most cases, it’s the first step to financial freedom. When you’re being confronted by 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 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. In any case, if you’re experiencing financial difficulties, it’s best to consult with bankruptcy professionals sooner rather than later. For a confidential discussion regarding your financial scenario, contact Fresh Start Solutions Gold Coast on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-goldcoast

 

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