June 9, 2017 0

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

Posted by:Charles Bosse onJune 9, 2017

Declaring Bankruptcy,Bankruptcy Sydney, Bankruptcy Advice

Going through financial hardship is a very stressful situation and sadly, millions of individuals throughout the world find themselves in this situation each year. People in this predicament have a number of options to recover from their financial burdens, and bankruptcy should be considered as a last resort when all other options have been exhausted. You’ve quite possibly seen a couple of those debt consolidating companies advertise their services on TV for example. Often, it can be difficult to try to figure out an effective way to recover from financial challenges, and many will turn to bankruptcy simply because it seems the simplest way of doing so. But how do you know if bankruptcy is the right alternative for you? This article will shed some light into bankruptcy to help you decide if bankruptcy is the best option for your particular circumstances.

Bankruptcy has some rather severe financial penalties: a bad credit history, increased difficulty in obtaining loans, and higher interest rates are just several of these. So needless to say, bankruptcy shouldn’t be taken lightly. There are a lot of debt consolidating companies that are happy to assist you, which is similar to bankruptcy as all your debts are consolidated into one. This is commonly considered a sensible alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to identify if bankruptcy is the best solution for you is to seek professional advice from bankruptcy experts. In the meantime, however, here are some signs that your financial situation is in a dangerous condition and bankruptcy may be the best alternative for you.

No Savings

If you don’t have any money in your bank and you’re confronting a mountain of debt, then bankruptcy may well be the best solution 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 five years? If no, then you really should think about seeking professional advice about your circumstance, as bankruptcy can be a desirable 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 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 position gets worse. With no extra 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 really amount to enormous sums of money. Whilst you’ll still be paying off debts with interest after declaring bankruptcy, typically 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 an indicator that your financial situation 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 prices to debt collectors because they are convinced that you aren’t in a situation to settle these debts in an acceptable period of time. This is a clear indicator that you should honestly consider declaring bankruptcy as it’s quite likely the best solution for both your finances and your psychological well-being.

Though 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 dealing 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 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 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 facing 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 Sydney on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-sydney

 

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