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

Home/Bankrupt, Blog/Is Bankruptcy My Best Alternative? How To Know If Bankruptcy Is Right For You

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

Bankruptcy Northern Rivers

 

Experiencing financial hardship is a particularly stressful situation and unfortunately, millions of individuals around the world find themselves in this situation each day. Individuals in this situation have numerous options to recover from their financial troubles, and bankruptcy should be thought of as a last resort when all other options have been exhausted. You’ve possibly seen some of those debt consolidating companies advertise their services on television for example. In the majority of cases, it can be overwhelming to try to work out ways to recover from financial challenges, and many will turn to bankruptcy simply because it appears to be 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 in order to help you determine if bankruptcy is the best option for your personal circumstances.

Bankruptcy has some rather serious financial penalties: a bad credit history, increased difficulty in securing loans, and higher interest rates are just a number of these. So needless to say, bankruptcy shouldn’t be taken lightly. There are loads of debt consolidating companies that are happy to help, which is similar to bankruptcy as all your debts are consolidated into one. This is commonly considered a practical alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to identify if bankruptcy is the best option for you is to seek professional 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 alternative for you.

No Savings

If you don’t have any savings in the bank and you’re dealing with a mountain of debt, then bankruptcy may well be the best solution for you. Even if you have the opportunity to work a second job to increase your cash flow, will this enable you to recover from your debts in the next five years? If no, then you should think of seeking professional advice about your circumstance, as bankruptcy can be a desirable alternative. Declaring bankruptcy will relieve you of these debts and although there are financial repercussions, 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 aggressively and you should really consider bankruptcy before your financial issues decays further. With no supplementary income, it can sometimes 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 truly amount to large sums of money. While you’ll still be paying off debts with interest after declaring bankruptcy, generally 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 phone and in the mail, it’s a sign that your financial condition is worsening 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 prices to debt collectors because they strongly believe that you aren’t in a position to repay these debts in an acceptable period of time. This is a clear sign that you should honestly look at declaring bankruptcy as it’s perhaps the best solution for both your finances and your emotional well-being.

Whilst 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 enduring 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 alternatives 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 bright future. Regardless, if you’re facing financial difficulties, it’s best to consult with bankruptcy professionals sooner rather than later. For a confidential discussion about your financial scenario, contact Bankruptcy Experts Northern Rivers on 1300 795 575 or visit www.bankruptcyexpertsnorthernrivers.com.au

 

By | 2018-08-01T01:58:46+00:00 June 14th, 2017|Bankrupt, Blog|0 Comments

About the Author: