If you are a business owner, having too much debt could most likely affect the overall structure of your business. To prevent this, hiring an excellent bankruptcy lawyer Los Angeles is a good starting point. In this case, a smart move is to work directly with the Law Offices of R. Grace Rodriguez. We are a heart-centered practice. This means we are compassionate, patient and understanding as we guide you with professional advice to see you through your current condition.
Although declaring bankruptcy in Los Angeles prevents creditors from coming after you to claim payment. Also, your unsecured debts will be eliminated to give you some time to organize your financial life. Bankruptcy is not always a good thing, especially for property and homeowners. After your bankruptcy petition is granted, you will lose all your property that is not exempt from the bankruptcy trustee. It is something that should be considered as a last resort.
Fortunately, bankruptcy is not the only way to help you organize your personal or business finances. It should be considered when you do not have the means to pay back your debts reasonably. Or if the collectors keep calling you constantly, if a prolonged job loss is keeping you from paying debts, and if the value of your assets is less than the total amount of debt. If your financial struggles are not severe, there are ways to avoid bankruptcy.
To make life easier, we have come up with this article to enlighten you with tips on how to avoid bankruptcy for your business in Los Angeles. Let’s explore more.
How To Avoid Bankruptcy In Los Angeles?
Maximize Income
If you are running a business, it is mandatory that you use the resources you have around you to maximize your income. You shouldn’t spend or plan beyond what you are earning too. Also, if you spend a lot on frivolities, you will always have a lot of expenses to deal with.
Maximizing your income involves making more money as a business and spending less. So, if you have a solid business, ensure that you are not paying more than necessary.
Prioritize Your Debt
Debt is one of the main things that push you into bankruptcy. When you are into a lot of debts, it will affect your finances. However, when you prioritize paying your debt, it becomes little, and in the long run, you will clear the debts easily.
If you feel your finances are not in order and you are considering bankruptcy, it is advisable that you focus on the debts you owe. This will get you out of bankruptcy within the shortest time possible.
Seek Financial Counseling
Facing financial difficulties and not able to cover your debts can be a very devastating experience. If you are heading to the point of bankruptcy, you should consider seeking financial counseling. Make a good decision by working directly with the Law Offices of R. Grace Rodriguez. We are a Los Angeles Bankruptcy Attorney, and we understand the right thing to do and when to do it. We will guide you through the ways of avoiding bankruptcy and other alternatives to your situation.
We will also give you tips for proper money management so that you will stop making poor financial decisions that might affect your business in the future.
Alternatives That Will Help You Avoid Bankruptcy
Debt Settlement
This procedure is commonly known as relief, and it involves offering payment of your debt in a lump sum. This method allows you to make payments less than what you owe the creditors.
In California, debt settlement could include taxes. The forgiven debt is treated as taxable income by the IRS. However, you can convince them that your liabilities exceed the assets and escape tax payment for the discharged debts.
Moreover, if you have not been paying your debt, it could affect your credit score negatively. So, you must always be wise and make plans to cover your debts within the shortest time frame possible.
Debt Consolidation
Debt consolidation is when you take a new loan to pay already existing debts. Several debts will be combined to form a single debt that has better terms. The favorable terms include lower interest and low monthly payments.
You can use debt consolidation as an alternative to bankruptcy to cover credit card loans. However, it is worthy to note that debt consolidation will not eliminate your debts; it will only change your loan terms.
Work With The Law Offices of R. Grace Rodriguez To Get Rid Of Avoid Bankruptcy
Not being able to pay your debt and manage your finances can be devastating. Your creditors will continuously be calling you to demand payment for their loans. This is what drives people to end up declaring bankruptcy so they can get rid of their debts. You shouldn’t expose yourself and your properties to the risk of bankruptcy. Besides bankruptcy, there are other options you can use to rearrange your finances.
For the best results, reach out to us at the Law Offices of R. Grace Rodriguez and let us help you avoid bankruptcy. We work diligently to make sure your rights are protected at every step. Our attorneys are fully trained, educated and experienced, and will provide you with a comprehensive analysis of your specific situation. We will work with you to devise an appropriate and effective strategy to resolve your bankruptcy issues. The goal is to move you toward a better future.