Workouts Instead of Declaring Bankruptcy in Beverly, MA
Declaring bankruptcy in Beverly, MA, isn’t always the only option for businesses and individuals experiencing financial difficulty. In some instances, it may be possible to reach an agreement with creditors to pay off your debts without filing for relief under the bankruptcy code. The Law Offices of Christopher W. Parker LLC is skilled at identifying the possibilities for non-bankruptcy workouts, including assignments for the benefit of creditors, trust indentures, etc.
The Different Types of Workouts
An overwhelming debt situation can have you starting to consider bankruptcy, but that option isn’t always the best one, and in some instances, may not be available to you. That is why we are ready to sit down and discuss different non-bankruptcy workouts with you to help you.
The main goal of most workout plans is to reduce the debt you owe. In this regard, one option is a Composition and Extension Agreement. A Composition involves two or more creditors agreeing to take partial payment to satisfy your debt completely. If a repayment plan is agreed upon, you may repay your reduced debt under the terms of the Agreement. This helps the debtor resolve the debt problem while helping the creditors get more money back than if bankruptcy was declared.
Another workout option is to increase the period of time for debt repayment. Also known as an extension, this option gives you the extra time you need to pay off your debt and get financially secure again.
Sometimes a composition and an extension can be combined for a debtor. This gives you a longer amount of time to repay a smaller amount of debt.
Advantages of a Non-Bankruptcy Workout
There are a number of different advantages to a workout, including allowing the debtor to avoid the expense of a bankruptcy filing. It also helps them to avoid the stigma or negative consequences of having a bankruptcy on your financial history.