By: Jeffrey Kam
If a company ran out of cash, could they file bankruptcy and start again? Bankruptcy is the last solution that a company will consider to be an outcome. Bankruptcy is considered an extreme move and taken as a final move after all alternate option is used. Even as an individual, bankruptcy will affect one's credit score history up to 10 years or receiving a higher interest rate when applying for new loans. Below are some tips that will help your avoid bankruptcy to happen.
- Increase your work period - By doing this your will be able to earn extra cash to pay off a portion of your current debt.
- Sell your assets - Selling your personal assets will enable you to gain some cash. Assets such as houses, cars, and inventory can be downgraded or easily replace.
- Re-evaluating your current financial debt - Debt cannot be written off unless paying it off, re-evaluate your current finance situation and pay off the debt bit by bit is better that filing bankruptcy.
- Change your financail habits - eliminate all unnecessary monthly expenses. Stop overspending.
- Search for alternative - talk with creditors to see if your can change the payment plan.
- Save all the time.