Different Alternatives for Debt Settlement that You can Try for Your Business
by Mashum Mollah Insurance 09 August 2017
If you want to start a new business, expand your existing business, or are facing a financial crunch within your business, the most common option that you choose is to apply for a business loan. If you fail to repay your debt on time, the situation can turn worse. In case the debt keeps on mounting, you may get into bankruptcy. If you want to avoid such a situation, it is better to opt for a settlement. This is where the option of debt negotiation settlement comes into play.
If you have been suffering from poor credit scores and a rising number of unpaid installments, and your creditors are not interested in offering you more, you should opt for debt settlement, which is a good way to tackle your debt obligation in an affordable manner. Here, we will talk about different alternatives to debt settlement.
Debt Settlement Companies
Once you have been able to secure a debt settlement loan, you will stop paying for your outstanding debt because you will then, be liable for paying only to the debt settlement company. However, in order to consider you eligible for the loan, the settlement company will look at your strength and then negotiate with the existing lenders on your behalf.
Read also: Useful Ways To Deal With Business Debt
The good thing about dealing with such companies is that they cannot charge you fees upfront, as you can only pay them a percentage of your settled debt or a percentage of your total debt.
You can Do it through a Lawyer or on Your Own
Many people prefer to rely on a lawyer while opting for a debt settlement solution. Hiring a lawyer for this can cost a bit more than other options, but the association of an attorney will help you to manage all legal issues you may face in the process. Doing it yourself can be a better option, but you will need a clean credit report for this, as suggested by many debt settlement reviews.
Apply for Bankruptcy and Start Your Business again
This can be an effective way of erasing your debt. For borrowers, who are struggling with their unsecured debt and have tried most of the alternatives, bankruptcy can be an effective option to go with.
Bankruptcy will stain your credit history for years, but at the same time, it will allow you to restart your business immediately. If you have decided to file for bankruptcy, you should hire a bankruptcy attorney, where you will only have to pay the legal and filing fees.
This is why you need to work with the best bankruptcy attorneys in the business. They can help you with all the paperwork and ensure that your problems are taken care of at every critical juncture. Not working with legal experts can seriously result in negative actions and punitive damages for not only your business but also your personal liabilities.
Consider a Debt Management Plan
If you have failed to qualify yourself for bankruptcy or just want to avoid it for its negative consequences, you can simply consider the debt management option. You can apply to any non-profit credit counselor to enjoy the benefits of a debt management plan.
However, the option will reduce the amount you will have to repay. But, you can reduce the amount of monthly installments by stretching the term. The most noteworthy feature of the debt management plan is that it will have less impact on your credit score.
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