Are there alternatives to bankruptcy?
The simple answer is, yes. There are alternatives to bankruptcy that should be well understood before anyone makes a decision to go bankrupt. A sense of responsibility about debt is a good thing and knowing what went wrong in the first place will help lead the way out. Most people would rather pay off their debts but some situations simply can not be avoided.
One way to deal with a debt situation is to do nothing. If there are no assets to garnish or win in a court case, no one will want to spend money trying to squeeze blood out of a turnip. They will simply write off the debt and forget about it.
A second way to deal with bankruptcy is to cut back on spending and pay off the debts slowly. Any creditor will usually want to work with someone to pay off a debt. They know that bankruptcy is an option in which they are not likely to see any money. Getting a part of the money or all of it over a longer period of time is better than none at all.
Thirdly, a business can ask their creditors to restructure a loan so that the debtor can take a breather and pay what they can afford given their current cash flow. This is often allowed in hopes of better business in the future. Should I hire a debt settlement lawyer?
Fourthly, debts can be consolidated into one loan with a monthly payment that is affordable. Various bills can pile up and cause a serious drain on monthly cash flow. When these are put into one loan, the monthly cash flow can improve dramatically.
Life is real. Sometimes there are tough decisions to make. When the rubber meets the road, consider the options and make a stand.
1. Should I file bankruptcy now or wait?
2. Can I file bankruptcy on my own online?