How Legal Help Can Save a Small Business from Bankruptcy

If you are looking to free your neck and get rid of your piling debt, bankruptcy is the best solution for you.

In most cases, bankruptcy is recommended for clients who do not have the means to pay back an entire loan. In other cases, like Chapter 13 bankruptcy, it may also be the best line of action if you need more time to pay the loan at a flexible and progressive rate.

Many people see bankruptcy as an untouchable topic. This is mostly because of the stigma that has been associated with it. Thinking that the world will judge you for your debts can plunge you into more debt.

 However, if you aren’t convinced that bankruptcy filing is the best option for you, other alternatives can save you the stress and constant harassment by creditors and collection agencies. Below, we look at some other alternatives to small business bankruptcy filing that you should consider.

1. Creditor Negotiation

A huge percentage of people who consider filing for bankruptcy have accrued sizeable credit card debt. Credit card debt is easy to amass because the process of obtaining a credit card is fast and straightforward.

People who cannot restrain themselves may easily run up the numbers and find themselves in a deep financial mess. The huge amount racked up in debt will continue to grow exponentially because of the unfavorable interest rate on credit card loans.

In the face of increasing credit card debt, a good option and an alternative to filing bankruptcy is to discuss better rates with your credit card company. While this may work, most credit card companies will reject your offer.

If your initial offer has been rejected, you may offer a lump sum to the credit card company in exchange for a more favorable interest rate on the remaining amount to be paid. This is a game of chance, as the credit card company may decline your offer.

2. Work With a Consumer Credit Counseling Agency

If you have had no luck negotiating better interest rates with your credit card company, the next line of action is to explore credit counseling agencies. These companies can help you reach a better agreement with your creditor. However, they do not have a 100 percent success rate. You should also be prepared to pay them for their services, whether their efforts are successful or not.

Alternatively, filing Chapter 7 bankruptcy can help you wipe the slate clean of credit card debt and other unsecured debts, including personal loans. If you are not qualified for Chapter 7 Bankruptcy, Chapter 13 restructuring can give you a better and more flexible chance to pay most, if not all, of your debt.

3. Debt Settlement

Creditors may be willing to accept an offer if your debt is very delinquent, and it appears that they have no chance of recouping the entire amount owed. In this case, you can agree with the creditor to pay a certain percentage of the total debt owed. The creditor may also be willing to reach a flexible repayment plan with you.

If you are feeling overwhelmed and hopeless about your financial situation, know that there is hope. Experts at the law offices of Scott R. Schneider are ready to help you get back on track with a bankruptcy plan tailored for your needs. Let us be the ones who make this goal achievable by getting in touch today at +1-516-262-6493. We look forward to hearing from you soon!

The  Law Offices of Scott R. Schneider Serves the New York communities of Hicksville, Jericho, New Cassel, Bethpage, Levittown, Plainview, Westbury, East Meadow, Syosset, North Wantagh, North Bellmore, South Farmingdale, North Merrick, North Massapequa, Uniondale, Wantagh.