Alternatives to Filing for Bankruptcy
Are you drowning in debt, and don’t know how to get out? If you are, you might be considering the legal status of “bankrupt.” That’s a bad situation to be in. It’s a move that’ll destroy your credit score, in addition to any chance of future business success. Before filing for bankruptcy, there are a few options you should consider. They’re a sweeter alternative to losing your shirt, both today and decades down the line.
(1) Go Full Minimalist.
Minimalism is the way to go if you can’t pay your debts. Consider down-sizing your accommodation. If you live in a home, move into a smaller one. Or, consider moving into an apartment. Sell whatever machines you don’t need. This could be an extra vehicle you own but rarely drive. Or they could leisure gadgets, like a boat, a furniture set, etc. In essence, cut down your lifestyle as much as you can. You’ll have an easier time paying off your debts. And you’ll feel less stressed to keep up a lifestyle that you would’ve eventually lost…
Cut Your Basic Living Expenses.
Cut down on the shopping sprees. Don’t buy items that you’ll store aside without use. This means no designer shopping. You shouldn’t pay absurd amounts of money for a fancy logo. And get familiar with dollar stores. They’ll be your best friend throughout the period you pay off your debts.
(2) Find an Extra Income Source.
Sell whatever skills you have in a 2nd job. This could be a freelancing job, working both online or offline. Or, you can work a part-time job, in addition to the job you already have. Even better, put up unused items you don’t own to use. You can use your car to sell transport services. If you have a small truck, you can start a moving company.
(3) Negotiate With Your Creditors.
If your debts are too back-breaking to pay off, negotiate for a lower amount. Obviously, you’ll have to prepare a detailed argument to convince your creditors. And for that, you might need a specialist’s help.
Get an Attorney and Accountant.
Hire a debt relief attorney. And get an accountant on your side. The debt relief attorney will have the job of negotiating for lower debts. After all, you’re likely to do a court visit or two if you’re close to bankruptcy. Even better, a debt relief attorney can help you find a settlement that doesn’t lead to bankruptcy. Also, they can drive away harassment or pressure from debt collection firms. Your accountant will help you put your finances in order. You can consult them on what you need, and what you can sell. Also, an accountant can prepare documents to help your attorney negotiate for lower debt payments.
(4) If You Run a Business – Check for Unpaid Accounts.
Many people filing for bankruptcy tend to be business owners. And the bankruptcy tends to come from restricted cash flow… If you’re a small business, make sure that all accounts you have are being paid. Look for delayed payments, and make sure they’re being paid on-time. You’ve got to enforce some form of credit control here.
Who Knows – Maybe You Don’t Need to Sell Your Business…
Many thinking about filing bankruptcy consider selling their businesses. But maybe you shouldn’t…
A lot of failing business are afflicted by late-paying customers.
Late paying customers restrict your cash flow. They make it hard for you to invest, expand, and maintain your business.
Even worse, the lack of cash means you can’t pay your basic living expenses.
You can’t pay your bills on-time, and you end up racking credit on your cards. You end up paying off other suppliers later, which puts financial stress on you.
How to Enforce Proper Credit Control.
Get outsourced credit control services. Through outsourced credit control, you’ll receive advice on how to handle late payments. You’ll get experts that revise your cash flow situation, making it more efficient. You essentially get better information on how to fix your business. With a fixed business, you’ll service your debts better. And you won’t have to go through the risk of bankruptcy. In fact, you might even be able to continue your normal lifestyle without downsizing!
Where Do I Find a Credit Control Agency?
Ask business partners or any financial experts you know for recommendations.
And if you can’t find one, then simply search online. Just type in “Racing Credit Control,” and you’ll get an excellent candidate to help you!