5 Bankruptcy Alternatives Everyone Should Know
Almost every person hits a point in their life when finances get too overwhelming to deal with. Financial distress is not necessarily a cause to immediately file for bankruptcy to get out from under the growing debts. There are a few good solutions to consider to get back on track before taking the most drastic route.
1# Adjust The Budget
2# Reach Out to Creditors
3# Debt Consolidation
4# Debt Restructuring
5# Formal Consumer Proposal
Offering a deal to creditors is known as compromising debts to avoid total bankruptcy. The best course of action is to work closely with bankruptcy attorneys to form a legally binding proposal for either paying a percentage of the debt, or extending time to slowly pay the balance. Once accepted, all conditions of the proposal must be followed to maintain good standings with the agreement. It’s important to remember that the proposal can also be rejected if the lender does not agree. A refusal would leave the option to resubmit after making changes or declaring bankruptcy.