Can you reduce business debt without filing for bankruptcy?

If you are running into financial difficulties with your business in New Jersey, you may have entertained the thought of filing for bankruptcy. While you know it will take a hit to your credit and potentially destroy your company, you are not sure if there are any other options. Fortunately, you may have a second chance if you can effectively reduce your debt and reallocate your resources to reorganize your financial expenditures. 

Reducing the amount of money you spend may increase your cash flow and allow you to optimize what you have to be able to close out the debts you have that are outstanding. According to Quickbooks, you should communicate your concerns with the people who are lending you money. If you are delinquent on payments are have outstanding balances, consider reworking your contracts and negotiating new terms so you can pay off your debts before your creditors send the collections companies after you. 

You may also consider reducing how much money you spend on things for your business that is not critical to organizational processes. Additionally, sit down and look at the budget that you have previously been using and modify it to meet your current needs. Finally, you may consider tactics for boosting the advertisement of your product or service to encourage more customers to buy what you are offering. You may even consider running a promotional offer or discounting certain products to encourage more people to buy.

The information in this article is intended for educational purposes only and should not be taken as legal advice.  

No Comments

Leave a comment
Comment Information
Email Us For A Response

Tell Us About Your Case

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Keep In Touch

East Orange Office
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017

Phone: 973-414-8069
Fax: 973-675-5886
Map & Directions

Newark Office
168 Bloomfield Avenue
Newark, NJ 07104

Phone: 973-419-5266
Map & Directions

Paterson Office
100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510

Phone: 973-419-7631
Map & Directions

Jersey City Office
26 Journal Square,
Suite 603
Jersey City, NJ 07306

Phone: 201-205-2496
Map & Directions