At some point in your life, you might find yourself in a position where you aren't able to pay all of your business debts. These are unfortunate realities of life and it might come to a point where collection agencies are starting to knock at your door asking for the money. They will try to get their money one way or another and even try to force you to sell off your assets.
While you might be okay with selling some of your objects around the house or even your vehicle, the one thing you cannot afford to lose is your home. Without a home, you lose out on plenty of future job opportunities and in a sense lose your whole life. Fortunately, there are ways that you can cope with business debts without losing properties.
Here are a few tips on how to do so.
No one ever wants to sit down and declare bankruptcy. This is often a last-ditch effort used by the person to get some relief from the debts that they owe to other people. The type of bankruptcy you declare depends on the amount of debt you have and whether it is personal or business. The important thing is to know what to do after you have decided that you are going to go through with it. Experts like Bankruptcy Attorney Tristan Brown recommended hiring an attorney to help deal with the matter. They are great at negotiating with these businesses and also know all of the legal intricacies involved in the process.
Will you be able to keep your property? Statistics have shown that people who go through an attorney keep their property 99% of the time. This is great news for anyone who is worried about losing it. What about payment for your attorney? Bankruptcy attorneys understand that you are in a position where you do not have much money. Therefore, they are great at setting up payment plans to help pay them at your own expense. These payments will not choke your wallet and you will be able to get back on your feet while doing it.
You also don’t need to worry about future harassment with an attorney. They work to prevent all creditors from calling and harassing you for your debts. They will walk you through the entire process and give you tips to prevent this from happening. They are a great resource to use and it is strongly recommended that if you are in a position like that, you call up an attorney. If bankruptcy is your only option, call up an attorney and start the process to declare it.
Set Up Payment Plans
Generally speaking with debt, a business will try to collect what you owe them for a long period of time. If they are not collecting anything, they will then sell the debt to a debt collecting agency. From there, these agencies begin to harass you and ask for your money. The important thing to note is that they did not pay the business the full amount you owe. As an example, you might owe a business $1000, but they sold your account to a collector for $400.
It is important to understand this because you can use it to your advantage. These agencies strive for profit more than anything and with the right persuasion, you can end up getting out of your debts for much lower than you actually owe. Not only that, but you can also set up payment plans with these companies to help get you free. At the end of the day, they just want their money, and if they have the opportunity to get it, they’ll take it. As mentioned above, payment plans are great as they work to stop you from suffering too much financially. If you have not reached full bankruptcy yet, it is a great way to cope with business debts while keeping your property at the same time.
One of the alternatives that a person should also consider is borrowing money from a relative or a loved one. It might be hard to convince them to do so, but at this point, you don’t have anywhere to turn to. The bank will not approve any loans for you because your credit score will already be quite poor. Therefore, the only place you have left for money is your friends and family.
You don’t have to collect the full debt-money either from them. All you need to do is collect just a little bit to give you some breathing room as you try to find the rest of the money. No one likes to be in a situation where they borrow from others, but this might be a pill you have to swallow in order to keep your company.
Work More Hours
If you are employed during this, you have to do whatever is in your power to make money. If you are working, talk with your boss and let them know about the situation that you are in. People are generally understanding of other people’s lives and they will work to help you through it. If you are not currently employed, you need to start submitting your resume into places in the hopes of finding work. Not only will this help you make money to pay off your debts, but it will also improve your credit score with the bank.
By following all of these tips, you can cope with your business debts without losing your property. While you might be able to make a large payment into one, try to pay slowly as it will give you the most financial safety and freedom. A time like this can be extremely stressful, but it is important to remain calm and work through it one day at a time. If things reach a point of no return, make sure that you call up an attorney and you get vital advice needed to keep your assets for as long as possible. Good luck with everything and hopefully you get back on your feet soon.