What are the alternatives to Bankruptcy?
The lockdown and other social restrictions designed to contain the spread of Covid-19 have significantly impacted the economy and businesses in Nevada.
Businesses in the retail, personal service, and hospitality industries have been impacted most. As a result, a large number of Nevada businesses have faced severe financial hardship. However, bankruptcy is generally considered to be the last resort. One of the things you can do in order to protect yourself and your business from a financial disaster is to educate yourself about major alternatives to bankruptcy:
1. Getting organized.
Companies that are in financial distress should consider taking time to get organized and get everything in order. Below are some good business practices to follow:
- Make sure you handle loans made to your company in a timely manner, especially so if they are secured by your assets.
- Keep your personal and business assets separated from each other.
- Maintain a thorough inventory of your company assets and obligations.
2. Debt settlement.
A debt settlement refers to a voluntary arrangement that you and your creditors negotiate on the terms of the debt you may owe. For this, you may have to call each creditor directly to try and negotiate repayment terms.
It is a good idea to seek the help of a Las Vegas debt settlement attorney who can help you understand interest rates and other repayment conditions and formalize your new agreement with your creditors in writing.
3. Selling assets.
If your income isn’t enough for you to meet your obligations, you may want to consider selling some of your assets.
Consult with a Nevada bankruptcy attorney to find out what assets you may keep and what assets you may have to sell in case if you end up filing bankruptcy in Nevada.
4. Consider Credit Counseling
With the help of a Nevada credit counseling company, you can develop a debt management plan with payments you can afford.
To Sum it Up
Bankruptcy is a delicate and complex proceeding, and you want someone with plenty of experience to consult you and guide you through the process and help you determine the scope of the discharge.
If you would like to find out whether bankruptcy is the right option for you, please request a call-back by submitting a short online form. All initial consultations are free and confidential.
Sources: https://www.incharge.org/bankruptcy/alternatives/ https://www.clevergirlfinance.com/blog/types-of-bankruptcies/ https://bankruptcy.mnpdebt.ca/faqs/alternatives-to-bankruptcy https://www.lexology.com/library/detail.aspx?g=aa311a9d-bc34-4012-b13b-142fada52d4a