Bankruptcy is one of the worst situations a person may encounter in his or her life where they don’t have anything else to sustain their needs, and it also hurts a lot for a person to declare bankruptcy. Some may think that bankruptcy comes in just a snap of the fingers, but it is not; bankruptcy happens over time, and we may not know that it is happening to us already.
What are the signs of bankruptcy?
Just like with other challenges you face every day, bankruptcies also have several signs that you should take note so that you can make ways to cope up with your financial dilemma. Here are three common signs of bankruptcy that a person can observe:
● You’re only paying minimum repayments on your debts
All types of debts; may it be a personal loan, car loan, salary loan, credit card debts and more, the banks and licensed moneylenders (www.licensedmoneylender.loan) have their minimum repayments.
You will know that you already have money problems when you would stick to the minimum monthly repayments rather than paying a large amount of money every month that is indeed more beneficial because you can repay your total debt earlier and save money on the interest rate.
● You’re taking funds from your retirement account
After working for a couple of years, you now have saved money in your retirement account which you will use of course after you retire from work, but there are others who would opt to take the money they have saved in their retirement account whenever they badly need funds.
When the time comes that you have to retire, it is required in Singapore that you have a minimum funds deposited on your retirement account thus if you can use the money you have saved in your retirement account, you will be forced to repay the money you took from it which is more hassle and definitely not a money-wise decision for you.
● You received a call from a third party agency about your repayment collections
After you haven’t paid your debts for several months already, lenders will eventually pass the responsibility of collecting the money from you to a third party agency, and most borrowers don’t want things to go this far because third-party agencies tend to be harder to negotiate with compared to banks and licensed moneylenders.
At first, the third party agency will give you phone calls to remind you with your loan repayments and if you still haven’t paid your debt after all their reminders and calls, they can now bring it to a higher matter and will raise a lawsuit against you where your employer will hold a portion of your salary which will be used to repay your debts.
With these signs of bankruptcy, you can eventually find ways on how to avoid being further pushed to this situation. Bankruptcy awareness is essential to everyone because it can help us decide what moves we should do to cope up immediately, and in worst cases, we may choose to hire a lawyer that will assist us in dealing with our financial status.