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- June 14, 2017
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Experiencing financial hardship is a very stressful situation and sadly, millions of people across the world end up in this situation every year. Individuals in this predicament have various options to recover from their financial problems, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve quite possibly seen several of those debt consolidating businesses advertise their services on TV for example. In the majority of cases, it can be confusing to try to work out an effective way to recover from financial hardships, and many will file for 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 to help you decide if bankruptcy is the best option for your individual scenario.
Bankruptcy has some rather serious financial implications: a bad credit rating, increased difficulty in obtaining loans, and higher interest rates are just some of these. So it goes without saying, bankruptcy shouldn’t be taken lightly. There are lots of debt consolidating companies that are happy to help, which is similar to bankruptcy as all your debts are consolidated into one. This is generally considered a realistic alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to learn if bankruptcy is the best option for you is to ask for professional advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in an acute condition and bankruptcy may be the best solution for you.
If you don’t have any money in your bank account and you’re experiencing a mountain of debt, then bankruptcy may well be the best solution for you. Even if youcan manage to work a second job to increase your earnings, will this allow you to recover from your debts in the next five years? If no, then you should look into seeking professional advice about your situation, as bankruptcy can be a feasible 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 magnify quickly and you should really consider bankruptcy before your financial issues gets worse. With no extra income, it can sometimes 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 considerable sums of money. Although you’ll still be paying off debts with interest after filing for bankruptcy, regularly you can arrange better terms on conditions on your debts after declaring bankruptcy.
Debt Collectors Are Calling You
When you’re being consistently hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial position 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 heavily discounted rates to debt collectors because they believe that you aren’t in a position to pay off these debts in an acceptable period of time. This is a clear indication that you should honestly think about declaring bankruptcy as it’s quite likely the best option for both your finances and your mental well-being.
Though there are some serious financial consequences, bankruptcy isn’t the end of the world and in many cases, it’s the first step to financial freedom. When you’re being confronted by 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 alternatives available to help you in financial hardship, if you’re encountering any of these 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 encountering financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial situation, contact Bankruptcy Experts Gladstone on 1300 795 575 or visit www.bankruptcyexpertsgladstone.com.au