The initial and most important phase is to negotiate with creditors. If you do not have the full amount of money you owe to pay back on time, but you still have a monthly income, you can ask your creditors to extend the deadline for giving the loan back, with the agreement that you will pay back the full amount as soon as you receive it.
IVA is another option, in which a professional creates a timeline to help you avoid bankruptcy. This will involve the state government, and if your insolvency application is approved, your creditors will be unable to take action. Your advisor will devise a plan to repay a fixed quantity of money over a fixed period of time so that you will be debt-free and avoid bankruptcy in a few years. In addition, your creditors cannot take legal action against you unless you continue to make timely payments.
Reorganizing the debt is a prerequisite for declaring bankruptcy, and if done correctly, it can prevent you from filing. The procedure enables firms in default to restructure in order to regain positive cash flow and provide creditors with the most promising return possible. The optimal strategy is to negotiate debt reductions and payment expansions with your creditors.
Additionally, business owners can employ an expert to manage all of their company's funds and cash. In order to prevent the bank from declaring insolvency, he will devise plans to save money and reduce the majority of expenditures, and he will also assist in investing funds in projects that promise a greater return.
Additionally, one can reduce wasteful expenditures and employee perks. One of the most essential things is to gain the trust of the business's employees and to discuss major issues with them, as their suggestions may be of great benefit to the business. Reducing the size of some key departments is an extreme measure that will have a negative effect on the economy as a whole because it will result in the termination of a large number of employees, thereby increasing unemployment.
In conclusion, all of the aforementioned alternatives may be utilized by an individual or business to avoid declaring bankruptcy, which will have detrimental psychological effects on those associated with it. These are the legal options that can prevent individuals and businesses from giving up and help them discover new ways to generate positive cash flow.""
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