Bankruptcy is a situation when you have no means to pay up the debts you owe individually or as an organization. Bankruptcy is a situation that can occur to any individual or organization, irrespective of their great plan. When a company files for bankruptcy, it’s because they have no other viable option. Bankruptcy is a frustrating time and situation for any individual who has to go through the case. If you are considering bankruptcy, here are some six tips for surviving the situation;
Consider debt negotiation
The first and easiest method of surviving bankruptcy will be to negotiate the situation of your debt. It may sound easy to negotiate debts, but it doesn’t always go as planned. It can even get harder when you loaned money from different sources. That means you have to go to each creditor and present your proposal for debt reduction. The decision to accept or reject your proposal relies solely on your creditor. So if they reject the offer, you have to accept. Check out this top rated bankruptcy attorney in Chattanooga.
Try out a debt consolidation
Debt consolidation is a situation where you collect a singular debt to pay off previous debts. This may not exactly be the best plan to get out of bankruptcy if you owe only one person. Debt consolidation works excellently well when you have multiple creditors. So instead of having the pressure of settling each debtor, you can take a single loan to pay off all others. All you need is to calculate all your loans and take a consolidation loan to replace each loan.
Set debts priority
When you’re getting deep into debts, you begin to fret at one point or the other. This fear may push you into more debts to save the situation. Sooner than you expect, these debts accumulate and become a scary figure. This may distract you and influence you to file for bankruptcy. However, you can arrange all your debts in terms of importance. That way, you can identify the debts that need immediate attention.
Get a plan B
For you to be in debt, something is wrong somewhere. If you’re in debt as a company, it means that the services you’re offering are not enticing enough for people to patronize. You can decide to change your business model, the products you sell, and the services you offer. This may change the whole business story and bring in profits. Likewise, if you have so many debts as an individual, you may consider getting a job. With the job, you can pay some of the debts or at least negotiate with creditors.
A consumer proposal is similar to a debt settlement with a slight difference. With a consumer proposal, you don’t need to forfeit all your assets for the debt. Instead, you agree to a particular price, and when you can pay that agreed price, you clear the whole debt. To file a consumer proposal, however, you’ll need technical knowledge.
Try out liquidation
Liquidation means selling your assets and properties to clear out all of your debts. If you’re on the brink of bankruptcy, you can consider this option. However, if you still have time on your side and reduced pressure, you can try out the other tips above.