Insolvency is a financial state where your liabilities, spending, and debts exceed your assets and earnings. In other words, you do not have the cashflow to pay your debts or meet other financial obligations. It may seem like this financial state is a time where the only solution is filing for bankruptcy, but this is not true. Fortunately, you can work with us at Morgan & Partners Inc. to discuss our insolvency services and alternative solutions before filing for bankruptcy. Here are three alternative solutions we may recommend over declaring bankruptcy.
- Debt negotiation: When you have reached a point where your debt and other financial obligations exceed the money you have or your earnings, debt negotiations may be a solution. You may be able to reach out to your creditors to negotiate and reach an agreement on a reduced amount due, more affordable payments, or an extended payment plan. This is a valid alternative to consider before filing for bankruptcy as a solution to your insolvency.
- Debt consolidation: Debt consolidation may be a great way to prevent true insolvency before your debts become more than you can manage. This involves consolidating your debts under one creditor or banker to have one monthly payment rather than multiple and usually at an amount and timeline that may work better for you.
- Consumer proposal: Another potential way to resolve your insolvency may be through a consumer proposal. We can collect the necessary documentation to reach out to your creditors and negotiate a payment plan and timeline that works better for your financial situation. We may also be able to negotiate reduced interest and a reduced total amount due.
No matter the method that may work best for you to resolve insolvency, we recommend that you work with us for our insolvency services. You can give us a call if you would like to learn more.