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

Experiencing financial hardship is a very stressful situation and unfortunately, millions of individuals across the world find themselves in this position each year. Individuals in this predicament have quite a few options to recover from their financial distress, and bankruptcy should be considered as a last resort when all other options have been exhausted. You’ve most likely seen a few of those debt consolidating businesses promote their services on TV for example. In most cases, it can be difficult to try to figure out an effective way to recover from financial struggles, and many will turn to bankruptcy simply because it appears to be the easiest 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 figure out if bankruptcy is the best option for your personal situation.

Bankruptcy has some fairly serious financial penalties: a bad credit report, increased difficulty in securing loans, and higher interest rates are just a few of these. So needless to say, bankruptcy should not be taken lightly. There are plenty of debt consolidating companies that are happy to help, which is similar to bankruptcy as all your debts are merged into one. This is usually considered a sensible alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to learn if bankruptcy is the best solution for you is to ask for specialist advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in a dangerous condition and bankruptcy may be the best option for you.

No Savings

If you don’t have any money in your bank and you’re sustaining a mountain of debt, then bankruptcy may well be the best alternative for you. Even if you have the ability to work a second job to increase your earnings, 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 position, as bankruptcy can be a desirable alternative. Filing for bankruptcy will relieve you of these debts and although there are financial penalties, 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 compound rapidly and you should really consider bankruptcy before your situation decays further. With no extra income, it can often take up to 30 years to repay 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. While you’ll still be repaying debts with interest after declaring bankruptcy, typically you can negotiate better terms on conditions on your debts after declaring 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 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 highly discounted prices to debt collectors because they are convinced that you aren’t in a position to repay these debts in a reasonable period of time. This is a clear sign that you should seriously consider declaring bankruptcy as it’s possibly the best solution for both your finances and your emotional well-being.

Even though there are some serious financial repercussions, bankruptcy isn’t the end of the world and in many 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 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 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 regarding your financial circumstances, contact Bankruptcy Experts Tablelands on 1300 795 575 or visit