There is no need to think the all is lost when you lose your business and band your head against the wall. There are effective and useful ways to deal with the debts that you already have even if you are out of business. It is true that you have a lot to consider and a lot of payments to make if your business closes down but it is still not the end of the world. You may have suppliers and creditors breathing over your neck and you will find them pressing you even harder once theyfind that your business is out of the scenario.
Decide Carefully After Closure
Therefore, after closure of your business you must tread carefully to deal with your debts and decide whether or not to clear a particular debt in full or go for settlements. As the amount outstanding can be a large one you have to satisfy all your creditors which may even include the utility service providers and the banks. If you find no alternative then of course you can file for bankruptcy. But if you are that kind of a person who would never give up without a fight then here are some ways in which you can find yourself clear from debts effectively. You must arrange your debts first to start with by prioritizing each of them according to the amount outstanding, rate of interest and much more.
Debt Prioritization Helps
This prioritization would help you to clear of your debts in a strategic manner and in a way in which you can also plan for your next payment and subsequently clear all your outstanding debts. Like for example if there is an immovable or a movable asset attached as collateral security of your business then you would surely want to save it from being repossessed. In such cases you must keep this at number one in your priority list and then consider the other ones. The next payment made must be towards your employees in terms of wages accrued and any other benefits as well.
Negotiate With Creditors
If you have any loan for which you are personally liable but there are court judgments on it, you must try to negotiate with the creditors, even if it is your bank so that you can get a chance of getting some respite from the rate of interest by explaining your situation well. All this must be done after you have carefully calculated what the actual amount that is left in your hand and how much you can actually afford to pay. Find out the how much your creditors are willing to settle with and then make the payment.
Keep Some Money As Reserve
Even though you manage to clear your debt, you must keep some amount in reserve so that you can settle any claim that comes after some time. You can keep this reserve money safe in some separate bank account if the amount is large or even in the same account of your business. You can take help of a good debt counselor for all this activities and help and click here to find some good counselors.