If you find yourself constantly missing payments and struggling with your finances, filing for bankruptcy might be your only option. As daunting as this sounds however, don’t panic! There are multiple ways to get out of bankruptcy in Chicago with your credit intact, and our team at Onyx Homes can help you get through it as quickly and efficiently as possible.
Here are five ways you can get out of bankruptcy quickly in Chicago:
Speak to a bankruptcy lawyer to find out your options
Contact a lawyer immediately
If you’re buried in debt and feeling like there’s no way out, you might be considering bankruptcy. But before you take this drastic step, it’s important to speak to a bankruptcy lawyer to find out all of your options.
Consider a cash home buyer
In some cases, filing for bankruptcy may not be the best solution. For example, if you have a lot of equity in your home, you may be able to sell your home for cash and use the proceeds to pay off your debt. There are also cash home buyers in Chicago who specialize in working with people in financial distress. So before you make any decisions, be sure to speak to a professional who can advise you on the best course of action.
File for Chapter 7 or Chapter 13 bankruptcy
Filing for bankruptcy can be a tough decision, but it may be the best choice if you’re feeling overwhelmed by debt. There are two types of personal bankruptcy that consumers can file for: Chapter 7 and Chapter 13.
Chapter 7, also known as liquidation bankruptcy, involves the sale of your assets in order to pay off your debts.
Chapter 13, meanwhile, is a reorganization bankruptcy that allows you to keep your assets while making payments to your creditors over time.
The type of bankruptcy you’ll want to file for depends on a variety of factors, including the amount of debt you have and the types of assets you own. An experienced bankruptcy attorney can help you figure out which type of bankruptcy is right for you.
Liquidate your assets and pay off as much of your debt as possible
If you’re planning on declaring bankruptcy, one of the first things you should do is liquidate your assets and pay off as much debt as possible. This will help you get the best possible outcome from your bankruptcy case.
Liquidating assets before bankruptcy declaration
When you declare bankruptcy, all of your assets become the property of the bankruptcy estate. This includes your house, your car, your savings, and anything else you own. The bankruptcy trustee will then sell off these assets to pay off your creditors.
Liquidating assets after bankruptcy declaration
However, if you liquidate your assets before you declare bankruptcy, you can keep them out of the bankruptcy estate. You can also use the proceeds from the sale to pay off some of your debts, which will reduce the amount of money your creditors will get from your bankruptcy case.
So if you’re thinking about declaring bankruptcy, make sure to liquidate your assets first. It’s one of the best ways to protect yourself and get the best possible outcome from your bankruptcy case.
Renegotiate with your creditors to get more favorable terms
If you’re struggling to make ends meet, it may be time to renegotiation your creditors for more favorable terms. This can be a daunting task, but it’s important to remember that you have leverage. After all, your creditors want to get paid back, and they may be willing to work with you to make that happen.
Be clear about what you can and can’t do
When renegotiating, be sure to be clear about what you can afford and what terms you’re willing to accept. You may need to be prepared to offer some kind of collateral, such as a car or home equity, to secure a lower interest rate or extended payment plan. But if you’re willing to put in the work, renegotiation can be a powerful tool for getting out of debt.
Take steps to improve your credit score so you can qualify for a loan in the future
Your credit score is one of the most important factors lenders consider when you apply for a loan.
A high credit score indicates to lenders that you’re a responsible borrower who is likely to repay your debt on time. A low credit score, on the other hand, can make it difficult to qualify for a loan or get a competitive interest rate.
If you’re planning to apply for a loan in the future, it’s important to take steps to improve your credit score. There are a number of things you can do to improve your credit score, including paying your bills on time, maintaining a good credit history, and keeping your balances low. By taking these steps, you can improve your chances of qualifying for a loan and getting the best possible interest rate.
Sell your Chicago home to Onyx Homes, LLC
Whatever route you choose, it’s important to take steps to improve your finances so you won’t go through the highs and lows of bankruptcy. If you need to sell your Chicago home fast, contact Onyx Homes, LLC – we buy houses in any condition with absolutely no need for extra costs like repair fees, commissions, and cleaning fees.
We take care of it all for you! Contact us to learn more today.
