There are many different circumstances that may lead to people finding themselves in financial difficulties. In some cases bankruptcy may be the best option for people to resolve their debt issues, however this is not always the case. There are quite a few different routes that you can go down that may be better suited to your needs than bankruptcy.
An Administration Order- Trout associates
It may be the case that one of the creditors that you owe money to will be able to succeed in getting a county court to rule against you. If this happens, you may be in the position where you have an administration order declared against you.
If you want to be given this as an alternative to bankruptcy proceedings, you will need to get yourself a form to fill out. It will ask you to give the courts information about all of the outstanding debts that you have against your name at present. You will also have to provide proof that your income is fixed and steady enough to be able to meet the required payments on a regular basis.
Debt Consolidation Loans
If you firmly believe that the financial difficulties that you are currently having are only going to be for the short-term, you should probably consider using alternative debt solutions to bankruptcy. This is because bankruptcy will hugely damage your credit rating and will also mean that your assets and property may be sold off to cover repayments.
One potential route that you could go down would be to take out a debt consolidation loan. This form of loan is designed to help your debt issues by using one large loan to pay off multiple smaller ones. One of the attractive features of this type of debt solution is the fact that you may be able to arrange a new loan that requires smaller monthly repayments than your existing debts. This is because you will be able to shop around and compare the different loans out there that are available to you. One thing that it is worth bearing in mind is the fact that with a debt consolidation loan you will probably end up paying back more over the entire course of the debt.
Debt consolidation is one of the rare forms of debt solution that will not actually have a negative impact on your credit score, as long as you keep up with repayments on the new loan. However one thing to be aware of is the fact that if you have already fallen behind on payments on your existing debts, you will probably be offered debt consolidation loans with much higher rates of interest than you would be otherwise. Its very important to keep a check on what step you would take next and how you would deal with such a situation.
I hope you found this read to be interesting and if you did then let me know in the comments below