3 Alternatives to Bankruptcy
Has your debt load been creating stress and sleepless nights? As a business owner, I have felt the pain of debt that was easy to get into but very hard to get out of. No matter what the circumstances are that put you here you have to develop a plan of some sort.
To file Bankruptcy or not that is the question? Here are some alternatives that may help you get you to choose what is the best option.
Here is where you start so that experts and advocates can help you determine the best solutions for you!
- You have to build a list of debtors.
- Document what you been paying and what the monthly should be? Have you been paying.
- Make notes on what your payoff balance would be?
- Look at your available credit
- Create a budget that lists your debt separately. What do you need weekly/monthly to live?
I know a lot of people in deep depart are scared to look at their debt in a realistic manner. But, it is only when you take these steps you can truly get a handle on it. Many just put the bills in a pile and just pay what they can.
So here are some Alternatives to Bankruptcy
But, first, at once you “Changed” the agreed-upon payment plan that you started with your creditor or vendors you have damaged your credit. As you have NOT paid as agreed. So if you been paying your payments but it’s simply overwhelming then only take these steps with great caution. If you are able to make payments other options may be available to you!
A. Make direct Contact with the creditor – (see notes below about old debts) – Ask them are there are any programs you are eligible for that could reduce your monthly payment due to your current circumstances. keep accurate notes on whom you spoke with any ID Codes so if you later have to reference this in future documents you have it. In most cases, this will freeze or remove your line of credit with this creditor. Which of course you should expect. So if you been living on this debt determine what is the max payment if any you can make within your budget. NEVER Agree to something you can not realistically honor. That will only make things worse. Also read all the fine print of what you’re agreeing to. You could be waiving rights that you may need later to survive.
Your creditors would rather get some money from you than no money at all. Let your creditors know you are having financial difficulty and want to avoid bankruptcy.
B. Determine if any of your assets have value and could be liquidated (sold) to reduce your overall debt and all you to continue paying remaining creditors. Once these assets are gone and paid towards reducing your debt. Can you shape your budget by reducing living experiences that are sometimes painful but less painful than bankruptcy? Can you eliminate your cable bill, memberships such as prime, gym, Nextflix, and others?
C. Could you borrowing money from family and friends? Some may say it is a bad idea as It’s been known to create hardships and even end relationships. But there’s an exception to every rule, and bankruptcy is one. Take the time to calculate how much money you need to avoid bankruptcy.
One of all of these things may help you avoid the Big “B” and However if not then you may have to search for a Bankruptcy attorney that can help navigate this difficult situation. Find a Bankruptcy Attorney here
