3 Alternatives to Consider Before Filing Bankruptcy

Published by Fricke & Associates Certified Public Accountants
at September 24, 2020

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If you are working extremely hard but you are still drowning in debt and back taxes, you may think filing for bankruptcy is the only option. Think of filing for bankruptcy as the floatation device you only use when there is no other way to stay afloat. It is an extreme measure and should not be taken lightly. At Fricke & Associates, LLC., we want to help you navigate your financial troubles and choose the best course of action to recover. Filing bankruptcy may be the solution, but it is best to consider all your options first. If your financial problems are related to back taxes, bankruptcy may not actually wipe those away. Before you consider bankruptcy, follow these steps to determine if there are other choices:

1. Schedule a Consultation with a Tax Relief Firm—Fricke & Associates, LLC. provides tax relief services to help taxpayers in financial struggles. We can help assess your back-tax situation and make suggestions for resolving the issue with the IRS. If your back taxes are considerable, you could improve your debt situation greatly by coming up with a plan for them.

2. Ask about Lower Interest Rates On Debts—High interest rates on debts can make it nearly impossible to dig out. Credit card interest rates are notoriously high, which explains why so many taxpayers are unsuccessful at escaping the cycle of ever-increasing debt with them. With a lower interest rate, you may have a chance at actually paying down your actual balance. Credit card companies are generally more receptive to conversations about a lower interest rate when you inform them that you are considering filing for bankruptcy.

3. Refinance Your Debt–You still have options to save money and avoid bankruptcy even if your lenders or credit card company will not give you a better interest rate. There are options to refinance your debt, such as getting a home equity line of credit or personal loan which could provide you a much lower interest rate. When your interest rates are lower, your monthly payments will be more manageable. Refinancing your debt can require some shopping around. Different institutions may offer lower rates. The lower your rate, the more money you can direct towards your debts. Getting your debts refinanced can be challenging when you have an IRS tax lien or wage levy though. Contact Fricke & Associates, LLC. first so we can help you get released from this and on track to financial recovery.

Bankruptcy can be a fresh start to rebuild and recover amid a dire financial situation. Before you choose bankruptcy, contact Fricke & Associates, LLC. We can help you fully explore your options and make an informed decision. With our help, you never have to talk to the IRS directly. Tax resolution with our firm can save you time and money long-term. If you are eligible for other relief programs or forgiveness from penalties or interest, we will make sure you are informed of these options. Reach out to Fricke & Associates, LLC. today for a consultation. 

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If you need a financial advisor near Atlanta, GA, Fricke & Associates, LLC has the expertise and experience to understand your needs, analyze your financial data, promote your growth, and ensure your financial future is set on a successful path. Additionally, we are a leader in developing and implementing the latest technology for optimizing accounting, tax, and financial planning solutions.

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