Nobody likes to admit defeat and file for bankruptcy. It is an unpleasant process and can have consequences for your finances as well as your future business dealings. Insolvency is not the only solution at your disposal, however.
You may not be aware of it but you may not be as badly off as you think. It is time to look at your finances, look at how much debt you are in, and consult a Scottsdale bankruptcy lawyer. There still may be a way for you to salvage your situation. Here is what you can do to avoid filing for insolvency:
Tighten Your Purse Strings
One of the reasons that you are in debt is probably because you have been spending more than you have. It is time for this to stop. You need to take a look at your lifestyle and business ventures and find a way to stop hemorrhaging money. You need to quickly end all of your activities that are causing you to lose money, at least temporarily. This will help you to avoid getting into further debt. Also, the more money that you save, the more you have to contribute to your debt collectors. This too, will help you to diminish the amount of debt that you are facing.
Know Your Assets
Do you have sellable assets? If the answer to this question is a yes, then one of the first things that you should do is consider selling your assets. This is a good time to take stock of all of the things that you own and to decide which ones are actually worth some money. If you own a lot more things than you need, it is time for you to make arrangements to sell them. This can be collectibles, cars, or any other personal belongings. You will be surprised at how much money you will be able to get for these things.
Talk to Debt Collectors
No debt collector wants you to file for insolvency. This is because they lose out on the deal. In many instances, a debt collector will receive a lot less if you go bankrupt than if you decided to pay them back. This is why they may be open to coming to some form of payment plan. Take a look at all of your debt and then consider your monthly income. Depending on this, you can come to some sort of agreement with your debt collector. They may extend your due date if they know that you have a plan to pay them back.
Rearrange Your Mortgage
One of the ways that you can avoid insolvency is by restructuring your mortgage. Talk to your bank or your property lender, and decide on a new way to pay off your mortgage. This may include increasing the interest that you pay and extending your mortgage. You can also negotiate a new payment plan for yourself. This will go a long way towards settling your debts. It can also help, in certain instances, to avoid having to foreclose on your home.
If you are very close to bankruptcy, it is important to consider all of the advice that has been provided above. Instead of picking and choosing, you should commit yourself to everything on this list. It may be the only option that you have to avoiding bankruptcy.