Do Bankruptcy Alternatives Work to Keep My Real Estate?

The Federal Government of the United States is active in protecting debtors from bankruptcy proceedings and they are discouraging people to take this route. However, there are instances in which the debtors declare bankruptcy even if they do not want it. Talking with bankruptcy lawyer is necessary so that you can obtain legal assistance or advice.  A great source for information on bankruptcy and the effect on real estate go here.

real estateBefore reaching bankruptcy, it is necessary to look for other alternatives that can spare you from financial failure. There are several alternatives to consider before filing for bankruptcy. Some alternatives are simple while other requires good skills in money management. It is important to search all other possible alternatives before jumping into bankruptcy. You should consider how it will affect your financial health in the coming years. Likewise, your debt management technique should also be considered. Here are some bankruptcy alternatives to consider:

Proper Budget Management

In running a business, it is essential to have a budget plan that will guide you in all your expenses. However, even if you create a budget if you are not able to manage it, then it will cause some problems. Managing your budget properly is equally important as managing your debts. Otherwise, you may end up to bankruptcy.

Sale of Assets

A business or an individual swamped in debt most likely ended up selling the assets. Being stuck into a pit of debt can be embarrassing and declaring bankruptcy can aggravate the situation. That is why businesses in this financial situation preferred to sell their assets voluntarily or impose the Chapter 7 bankruptcy. The proceeds from selling assets can be used in paying off outstanding debt.

Settlement/Negotiation

In worst scenarios, the debtors declare bankruptcy before the creditor files a suit. On the other hand, the borrower and the lender may come up to agreeable circumstances and reach an agreement beneficial to both parties. The lender can reduce the amount of the money the borrower owed to pay. Through debt settlement or debt negotiation, both parties agreed for a lump sum that will be paid to the creditor.

Debt Restructuring

Debt restructuring is another alternative that can be considered instead of filing for bankruptcy. A debtor who wants to maintain decent credit score should maintain properly the balance of the monies owed. Thus, restructuring the balance of your debt can help in preventing bankruptcy.

If you find that you need to liquidate your property or real estate in Myrtle Beach SC. This might be a good place to start.

Counterclaim/Affirmative Defense

A lawsuit is usually filed by a creditor if the debtor is unable to pay the financially obligations. In this situation, the debtor has no right to contest the claims, but can do other alternative to defend in the proceedings. The debtors can file separate claim such as argument ancillary that can contest the original claim. The legal representatives or tactic defendants can employ affirmative defense that seeks dismissal of the suit including inappropriate claim documentation and failure to file statute of limitations.

Bankruptcy is not the only route to resolve debts. Considering other alternatives can help people with larger amount of debts to end up for bankruptcy. Through proper management of debts you can ensure that you can repay all your debts without going the route of financial failure.