Liquidation, bankruptcy, folding up, and so on…
Those are the descriptions for the bane of every business.
But bankruptcy as one is almost inevitable through the lifetime of every brand.
The best thing is to have a recovery plan in place to initiate after a great fall.
So, while you might want to contact this professional local bankruptcy lawyer that has complete 44years of experience, the recovery tips shared below only propel your chances of getting back up and running.
Create New Credits
Contrary to the popular opinion which says it is impossible to obtain credit after filing bankruptcy, as long as you keep your goals realistic, you can always get a future loan. Though the new credit accounts won’t clear the bad record on your credit report, however, they are a way to establish future improvement for your business. Also, while you may not be qualified for a premium reward credit, below are some of the credits obtainable to a business that has just filed for bankruptcy.
- Credit user loans; a credit user loan is offered by the credit union or a bank. The loan usually goes as high as $1000 which is to be paid back in 6 or 12 months after taken. A credit reporting agency will be assigned to you to which the payment is made as at when due or before then.
- Secured credit card; here, you are asked to make a deposit with the issuer of the said credit card. The size of your credit is either equal to or almost equal to the amount deposited. This way, if you fail to meet your payment and go into defaults, the card issuer easily use the deposited money to pay your debt. Well, that’s why it is called a secured credit card in the first place.
Check Your Credit Reports
After filing for bankruptcy, the bankruptcy bureau instantly updates your credit report with a statement that openly declares your filing for bankruptcy. This will be updated in your “Public record” section. After that, the exact amount of your debt is included together with a backing statement that stresses the coverage of the debt by the type of bankruptcy filed. After the debt is fully paid, then another update is made on your report to declare that you have been discharged in bankruptcy. Why am I telling you all this? Well, for a reason, it is important that you check to confirm that your report is correctly updated. The three credit reports you want to check seriously are your TransUnion, Equifax, and Experian.
Tap Into Opportunities
While some bankruptcies will stop your business from further operation in your facility for some time, you are never stopped from looking in other directions. At the bottom line, you need money to get out of the mess and you can always tap into the business opportunities online. You can work as a freelancer online on platforms like Fiverr, Upwork, and Freelancer to raise money while staying at home.