|June 9, 2017||0|
Experiencing financial hardship is a very stressful situation and sadly, millions of people across the globe end up in this situation each year. Individuals in this predicament have many 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 quite possibly seen a couple of those debt consolidating businesses offer their services on television for example. In a lot of cases, it can be overwhelming to try to find out ways to recover from financial hardships, and many will file for bankruptcy simply because it seems to be 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 scenario.
Bankruptcy has some pretty severe financial implications: a bad credit rating, increased difficulty in acquiring loans, and higher interest rates are just a number of these. So it goes without saying, bankruptcy should never 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 merged into one. This is usually considered a viable alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to figure out if bankruptcy is the best solution for you is to seek specialist advice from bankruptcy experts. In the meantime, however, here are some signs that your financial situation is in a serious condition and bankruptcy may be the best option for you.
If you don’t have any savings in your bank and you’re sustaining 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 income, will this enable you to recover from your debts in the next 5 years? If no, then you should think about seeking professional advice about your scenario, as bankruptcy can be an attractive alternative. Filing for bankruptcy will relieve you of these debts and although there are financial penalties, 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 condition decays further. Without any extra income, it can often times take up to 30 years to settle your debts by making minimum repayments only, so all the interest you’ll be paying over this time can certainly amount to large sums of money. Whilst you’ll still be paying off debts with interest after declaring bankruptcy, regularly 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 telephone and in the mail, it’s a sign that your financial situation is deteriorating and you 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 feel that you aren’t in a situation to pay off these debts in an acceptable time frame. This is a clear sign that you should honestly think about filing for bankruptcy as it’s likely the best solution for both your finances and your emotional well-being.
Whilst there are some serious 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 encountering 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 alternatives available to assist you in financial hardship, if you’re familiar with 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 circumstances, contact Fresh Start Solutions Hobart on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-hobart