If you’re considering bankruptcy, it’s important to understand the process and, most importantly, your alternatives. Bankruptcy should be an absolute last resort, and the decision to become bankrupt should not be taken lightly. It has serious ramifications and before you opt to declare yourself bankrupt, you should ensure you’ve exhausted every other option.
What are the Consequences?
Bankruptcy may mean that your rights to overseas travel are restricted, your assets may be seized, your bankruptcy will be on permanent public record and it will also mean mandatory disclosure about your bankruptcy to applicable parties.
Alternative 1: Budgeting Assistance
If you’re having trouble keeping up with debt repayments, missing dates, incurring more and more late fees, then chances are that your pay simply isn’t stretching far enough. In many cases, with better money management and a little professional help, it’s possible to structure your spending in a way that will actually allow your pay check to pay off those debts and still leave enough to live on.
There are many financial assistance providers who can work with you to develop a budgeting plan which will suit you while at the same time keep up with repayments to your debtors. It’s all about careful planning and structured spending, and it’s very achievable with a little help from somebody who is experienced with money management.
Alternative 2: Debt Consolidation
If you think that combining all your monthly repayments into one easy payment at a lower interest rate is an option that might solve your problems with missing payment dates and being bogged down by late fees and high interest, then debt consolidation is something worth looking into.
Using a debt consolidation loan or mortgage refinancing, you can pay out your existing loans with a new loan or mortgage, usually at a lower interest rate, meaning you’re left with only one, manageable repayment each month.
Make sure you explore this option through a reputable source, like Fox Symes debt consolidation loans.
Alternative 3: Informal Arrangement
An informal arrangement is another alternative by which you can negotiate with your creditor to find a mutually agreeable option for both parties to satisfy the debt during the temporary rough patch.
This can be done on your own by explaining your current situation and discussing suitable options with your creditor, or you can choose to enlist the help of a professional, who will have experience in what options are most suitable to your situation, most agreeable to your debtor, and can use already established professional relationships with credit providers.
Alternative 4: Personal Insolvency
When a person is unable to make payments when they are due, this is known as personal insolvency. An insolvent person has the option of entering into a Debt Agreement with the creditor, by negotiating a mutually agreed upon compromise for payment options which becomes legally binding once agreed. Instead, they might choose an agreement which is administered by a Trustee and voted upon by a majority of creditors, known as Personal Insolvency Agreement.
A reputable professional in debt management will be able to explain the benefits and suitability of these options with you, and work with you and your creditors to find the best solution.
It cannot be understated how valuable the use of a reputable professional can be when facing bankruptcy and exploring alternative avenues. Australia’s largest debt help provider is Fox Symes, which is a great place to start as they offer help with all the above alternatives.
Whichever you choose to pursue, there is help out there, and it’s always worth seeking help.
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