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

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

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Experiencing financial hardship is a very stressful situation and sadly, millions of people throughout the world find themselves in this position each day. People in this predicament have various options to recover from their financial troubles, and bankruptcy should be thought of as a last resort when all other alternatives have been exhausted. You’ve most probably seen some of those debt consolidating companies advertise their services on television for example. In most cases, it can be difficult to try to find out how to recover from financial struggles, and many will declare bankruptcy simply because it seems 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 decide if bankruptcy is the best option for your specific circumstances.

Bankruptcy has some pretty serious financial repercussions: a bad credit history, increased difficulty in securing loans, and higher interest rates are just a number of these. So it goes without saying, bankruptcy should never be taken lightly. There are a number of debt consolidating companies that are happy to assist you, 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 learn if bankruptcy is the best alternative for you is to ask for reliable 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 solution for you.

No Savings

If you don’t have any savings in the bank and you’re sustaining a mountain of debt, then bankruptcy may well be the best option for you. Even if you have the capacity 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 predicament, as bankruptcy can be a desirable alternative. Filing for bankruptcy will relieve you of these debts and even though there are financial repercussions, 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 quickly and you should really consider bankruptcy before your condition gets worse. With no 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 these years can truly amount to enormous sums of money. While you’ll still be paying off debts with interest after declaring bankruptcy, commonly you can arrange better terms on conditions on your debts after declaring bankruptcy.

Debt Collectors Are Calling You

When you’re being frequently hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial position 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 heavily discounted rates to debt collectors because they strongly believe that you aren’t in a situation to repay these debts in a reasonable time frame. This is a clear sign that you should honestly think about filing for bankruptcy as it’s most likely the best solution for both your finances and your emotional well-being.

Though 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 confronting 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 find out 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 experiencing financial difficulties, it’s best to consult with bankruptcy professionals sooner rather than later. For a confidential discussion regarding your financial scenario, contact Bankruptcy Experts Emerald on 1300 795 575 or visit www.bankruptcyexpertsemerald.com.au

 

By | 2017-11-16T05:49:41+00:00 June 14th, 2017|Article, Bankruptcy, Blog|0 Comments

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