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

Experiencing financial hardship is a particularly stressful situation and sadly, millions of individuals around the world find themselves in this situation each day. Individuals in this situation have various options to recover from their financial problems, and bankruptcy should be regarded as a last resort when all other alternatives have been exhausted. You’ve probably seen a number of those debt consolidating businesses advertise their services on television for example. Often, it can be difficult to try to figure out ways to recover from financial struggles, 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 option for you? This article will shed some light into bankruptcy to help you decide if bankruptcy is the best option for your specific circumstances.

Bankruptcy has some pretty serious financial implications: a bad credit report, increased difficulty in acquiring loans, and higher interest rates are just some 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 help, which is similar to bankruptcy as all your debts are combined into one. This is normally considered a viable alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to figure out if bankruptcy is the best solution for you is to seek reliable advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in an acute condition and bankruptcy may be the best solution for you.

No Savings

If you don’t have any savings in your bank account and you’re sustaining a mountain of debt, then bankruptcy may well be the best solution for you. Even if you’re able to work a second job to increase your income, will this enable you to recover from your debts in the next five years? If no, then you should consider seeking professional advice about your situation, as bankruptcy can be an attractive alternative. Filing for bankruptcy will relieve you of these debts and whilst there are financial consequences, 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 financial situation worsens. 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 certainly amount to significant sums of money. Although you’ll still be paying off debts with interest after declaring bankruptcy, normally you can arrange better terms on conditions on your debts after filing for bankruptcy.

Debt Collectors Are Calling You

When you’re being continually hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial scenario is worsening and you have 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 strongly believe that you aren’t in a situation to pay off these debts in a reasonable time frame. This is a clear indicator that you should honestly look at filing for bankruptcy as it’s perhaps the best solution for both your finances and your emotional well-being.

Although there are some severe financial repercussions, bankruptcy isn’t the end of the world and in most cases, it’s the first step to financial freedom. When you’re experiencing 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 determine what options you have. While there are many alternatives 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 prosperous future. Regardless, if you’re encountering financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion about your financial scenario, contact Bankruptcy Experts Maitland on 1300 795 575 or visit

By | 2018-07-05T00:13:11+00:00 June 14th, 2017|Bankrupt, blog|0 Comments

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