Chances are you’ve heard about people and businesses declaring bankruptcy. It’s a phenomenon that’s happening since debt can be simply overwhelming. However, when declaring bankruptcy, you have to be 100% sure that this is the right move for you. This is the case because being bankrupt poses a lot of changes and it’s not something you should take lightly. So, if you’ve been thinking about filing for a personal or business bankruptcy, you first have to ask yourself a couple of questions and figure out whether you’re making the right move or not. That said, here are all the questions you’ll need to find the answer to before you make any final decisions.
Can You Negotiate?
Sometimes, individuals and business owners think about bankruptcy too soon. Dealing with debt is never easy but if you manage to negotiate with the creditors, you might just be able to avoid filing for bankruptcy. The creditors will always want their money back the easiest and most effective way possible and sometimes, they’ll let you repay less or at least lower your interest rates. Just bear in mind that this depends on a lot of factors including your credit score. Whether you’ll be able to negotiate also depends on who your creditors are. For example, if you’re running a business and you owe money to a supplier you’ve been working with for years, they might just be ready to help you get out of debt without having to file for bankruptcy.
Do You Have Any Assets or Savings?
Another thing you have to think about before filing for bankruptcy is whether you have any assets and savings. If you don’t have any of these, bankruptcy might just be the right solution to your problems. This is the case because if you have any assets that aren’t secured with loans, the creditors might decide to take them instead of waiting for you to repay the debt. Filing for bankruptcy might help you not lose all of your assets which is definitely something you don’t want to happen. Therefore, make sure you take a closer look at all of your or your company’s assets and savings and figure out exactly how much they’re worth. If you don’t want to lose all of them, filing for bankruptcy might be a good idea.
What Are Your Options?
Before filing for bankruptcy, it’s always a good idea to think about what your options are. You might just manage to come up with a solution that’ll help you deal with your debt and avoid filing for bankruptcy. Asking friends and family for a loan can be an effective solution no matter if you’re dealing with personal or business debt. Even though borrowing money from friends and family can be a good idea, you need to bear in mind that feuds over money can ruin even the strongest of relationships. Luckily, there are some other effective solutions out there. For example, you can now get cash loans online no matter what kind of credit history you have. Applying for one of these is quick and easy and there’s no reason why you shouldn’t give it a go.
Can Your Business Be Sold?
When your business faces a lot of debt, there’s always a chance you’ll be able to sell it and rid yourself of the debt. Of course, selling your business probably isn’t what you’d planned when starting out but it might just turn out to be the only solution to your problem. This is again where you’ll have to think about any assets your business has and whether they could help you sell your business. Of course, you don’t have to sell your business to your creditors and the buyer can be any third-party out there. However, bear in mind that even once you find a buyer for your business, you’re going to need an approval from the bankruptcy court. Without the approval, you simply won’t be able to go through with it.
Have You Tried Counselling?
When it comes to finances, we all tend to panic a bit. This means that turning to experts who can advise you on your financial situation might be a smart move. Giving counselling a go can be a great solution, especially if you feel there’s nothing you can do to bring yourself back financially. By turning to experts, you’ll make sure stress and panic don’t affect your final decision, which is definitely the last thing you want to happen. Moreover, people who can offer your counselling services are financial experts and they’ll be able to give you the best advice possible. In case your business is facing bankruptcy, you might want to consult business professionals who could come up with the right solution for getting it back on the right track.
Bankruptcy is an option for anyone dealing with debt. However, before you file for a personal or business bankruptcy, you need to make sure that you’re making the right move. Answer these questions and you should be able to figure it out.