Bankruptcy Perth, Bankruptcy, How to File for Bankruptcy

Experiencing financial hardship is a pretty stressful situation and unfortunately, millions of individuals across the globe find themselves in this situation each day. People in this scenario have a number of options to recover from their financial woes, and bankruptcy should be considered as a last resort when all other options have been exhausted. You’ve quite possibly seen a few of those debt consolidating companies offer their services on television for example. In a lot of cases, it can be complicated to try to work out ways to recover from financial struggles, 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 option for you? This article will shed some light into bankruptcy to help you determine if bankruptcy is the best option for your individual scenario.

Bankruptcy has some fairly severe financial repercussions: a bad credit history, increased difficulty in obtaining loans, and higher interest rates are just a few of these. So it goes without saying, bankruptcy shouldn’t be taken lightly. There are numerous debt consolidating businesses that are happy to assist you, which is similar to bankruptcy as all your debts are merged into one. This is generally considered a practical alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to find out if bankruptcy is the best option for you is to seek specialist advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in a serious condition and bankruptcy may be the best alternative for you.

No Savings

If you don’t have any money in the bank and you’re grappling with a mountain of debt, then bankruptcy may well be the best solution for you. Even if you have the capacity 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 look into seeking professional advice about your scenario, as bankruptcy can be a feasible alternative. Filing for bankruptcy will relieve you of these debts and even though there are financial consequences, 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 quickly and you should really consider bankruptcy before your financial situation gets worse. With no supplementary 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 these years can really amount to significant sums of money. While you’ll still be repaying debts with interest after filing for bankruptcy, commonly you can negotiate better terms on conditions on your debts after declaring bankruptcy.

Debt Collectors Are Calling You

When you’re being regularly hassled by debt collectors on the phone and in the mail, it’s a sign that your financial scenario is deteriorating 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 highly discounted rates to debt collectors because they are convinced that you aren’t in a position to settle these debts in a reasonable period of time. This is a clear indicator that you should honestly look at filing for bankruptcy as it’s most probably the best option for both your finances and your psychological well-being.

Whilst there are some severe 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 dealing with 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 experiencing any of the above 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 consult with bankruptcy professionals sooner rather than later. For a confidential discussion about your financial circumstances, contact Bankruptcy Experts Perth on 1300 795 575 or visit www.bankruptcyexpertsperth.com.au