Jeff Clark Insurance
It is not that easy to file for bankruptcy. If you do so, you are mandated by law to attend credit counseling. You should also make payments to creditors, and most of all you will need to attend mandatory financial management education.
Also, you will have a poor credit rating. As a result, this lowers your ability to borrow money. With only high-interest loans available for you, you may incur greater debt. Most of all, filing for bankruptcy does not exempt you from lawsuits.
Here are five things you need to do to prevent bankruptcy in your business.
Settle Your Debts and Talk To Your Creditors
Settle and negotiate your debts. Go for debt consolidation when repaying your debts and take care not to lose any of your assets. Debt settlement is also another option. You can negotiate with your creditors about getting your money back. Most lenders will work with you to get you to pay them completely. As you continue paying, then your debt gets much smaller in time.
Be honest with your creditors as to payment terms and as to your capacity to pay. If you are having financial difficulty, say it but express your willingness to settle your debts. Most creditors will agree by lowering your monthly payment while some would even lower the interest rate.
Sell Some of Your Property
A trustee will review your property and make suggestions as to what you can sell or liquidate for the settlement of your claim. If you have a second car, some shares in the stock market, an antique collection and other valuables, then you can sell some of them. You may even sell them on Craigslist or eBay, and you may earn much from them.
Attend Consumer Credit Counseling
Get a professional to talk and negotiate with your creditors. Find a consumer credit counselor with much experience. He can help make your creditors agree to your payment scheme, and he may even successfully convince them to reduce interest rates. In fact, the new bankruptcy law requires credit counseling even before you decide to file bankruptcy.
Restructure Your Mortgage.
Find a way to refinance or restructure your mortgage. You can do this through a new payment plan arrangement for your mortgage. You can negotiate a new agreement with your housing lender to check if he is amenable to a new payment plan.
Check if you can have a new payment schedule under the same original terms. If you cannot do this, you still have the option of applying for a lower interest rate that can be stretched out over a much longer period. You can use the money that you can save on the front end to pay off debt.
Make Real Sacrifices.
The surest way to save money is to cut back on your expenses. Cancel the cable bill and gym membership and you can really save up money. However, if you think your company is not sustainable anymore and that you think you should sell, then you should approach a couple of good competitors. The money that you gain from the sale could pay off some of your outstanding debts.
Some Final Words
It is not easy to deal with bankruptcy but you can surely go a long way if you take the recommended steps. There’s no quick fix for your problem but if you only approach the right people, and if you are honest with your creditors, then you will get a lot of burden off your back. At Jeff Clark Insurance Agency LLC, we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (864) 814-3003. Get your free quote today by CLICKING HERE.