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Alternatives To Filing For Bankruptcy

For some people who are struggling with their business, the first thing that always comes to their mind is file for bankruptcy. Although it has its advantages, it is not always the best option. According to the website of Bradford Law Offices, PLLC, businesses can get into debt for several reasons. While bankruptcy can give businesses a way out of debt, it is not the only option. In this article, we will look at some of the ways a business can regain financial control:

Credit/Debt Counseling
By submitting to credit or debt counseling, you can schedule regular payments to the credit counseling company who will then make payments on your behalf to the creditors. It will also help you get out of your debt faster

Debt Settlement
Another option you can choose is debt settlement. You can try negotiating with creditors to settle an amount that is lower than what you owed. The only drawback of this option is that it will show up on your credit report as an amount paid less than the agreed amount.

Asset Liquidation
By selling or liquidating assets, you do not have to worry about getting bankrupt. You can easily and quickly pay off your debts. However, it would be a bitter pill to swallow when you have to sell your possessions but it could be worth it especially if you become debt free.

Debt Consolidation Loan
A debt consolidation loan will help cover all of your debt. If you have home equity, you can use it to repay unsecured creditors. Just make sure that you settle the loan or else you could find yourself homeless.

According to the website of Gagnon, Peacock & Vereeke, P.C., it is normal for businesses to experience financial difficulties. Consider the above mentioned alternatives. Bankruptcy should be the last resort and not the first or only solution to your financial difficulties.

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