Finding an Alternative to Bankruptcy Is Essential

May 10

Bankruptcy is never a good option, and wherever possible you need to find alternative solutions to your problems. Owning a business can be incredibly rewarding, however, it can also be a struggle, and can quickly become a nightmare.

The moment that you find yourself in debt and struggling to pay the bills, you need to find a solution, and quick. An effective way to go about it is to liquefy assets like properties if you have any. For example, you could sell your St Louis house fast if you have another place to live in. This is because property sales can raise large amounts of money, which could work in your favour depending on the amount of debt you need to clear. Another way to clear debt is by taking a loan from your friends or family if they have the funds to spare.

However, there is never any point in hiding the fact that you are in trouble, and the sooner that you face up to your problems the better. Finding a feasible solution is the only way forward, and will ensure that you can continue trading. Whatever alternative to bankruptcy you find, it will provide you with peace of mind. You can begin to plan for your future without this huge weight on your shoulders, within time, you can move forward.

Avoiding bankruptcy is essential, and will help you to pay off the debt, continue trading and avoid a bad credit score. You need to remain open minded and explore every possibility before making the final decision. Voluntary agreements are a way forward that has become incredibly popular, providing an alternative to your problems.

An IVA is a method of reaching an agreement between your business and your creditors, to ensure that your debts are paid. Both parties will need to approve the figures, and the time scale for paying the money back. You will be entering into an agreement regarding the repayment plan, so it must be realistic.

This is considered to be the better option rather than bankruptcy for numerous different reasons, including:

  • Credit rating is not affected- this is a vital aspect of all borrowing, and you may not think that it is important, however, bad credit ratings can affect you in the future. Bankruptcy will have devastating effects on this score. Some agencies will store the results for as long as 10 years, which will affect you.
  • Legal implications- can be huge and you will discover that the moment you file for bankruptcy, everything is affected. You will be barred from participating in certain professions, and this can affect your future career.
  • No court case- this is a massive benefit as you will be able to agree the terms and conditions without involving the courts that can be costly. Choosing this alternative to bankruptcy will provide a private debt solution.

There are other alternatives, but this is considered to be the most popular, and will ensure that you pay your debts and move forward with your life. Owing money is never nice, and you want to be able to make a success of your business, without the huge responsibility of debt. Everyone that has used this method has realised that there are alternatives to bankruptcy.