Believe it or not, in 2019, there were 772,646 business and non-business bankruptcy filings, according to the United States Courts. It won’t be a surprise if the number increases this year, as a result of the COVID-19 pandemic.
What Happens When You File for Bankruptcy?
When you file for bankruptcy, you’re declaring that you’re unable to pay your debts, and it’s a legal procedure overseen by a federal court. The two most common ways to file bankruptcy are chapter 7 and chapter 13. However, both chapters still hurt your credit score. Filing for bankruptcy can give you 7 to 10 years of bad credit history, making it harder to overcome your financial situation.
3 Options Before Declaring Bankruptcy That Won’t Hurt Your Credit
We know how stressing it is to be on the verge of bankruptcy, but regardless of how overwhelming it is, the best way to confront it is by looking forward to a solution. Opening Doors Properties gives you a way out by buying your house; however, before you decide what is best for you, we want to share three options you have before declaring bankruptcy in Charlotte, NC, without affecting your credit.
1. Sell Your Assets
One of the first steps to take when you’re falling behind your mortgage payments is selling your assets on your own. Anything that can give you some room to pay the late fees. You can sell clothes, books, TVs, furniture, and more.
2. Get a Second Job
Getting a second job might not be as difficult as one thinks. If you don’t have enough time or the resources for transportation, you can also try freelancing websites. It surprises the number and type of services you can offer as a freelancer.
3. Sell Your Home to a Home Investor
Selling your home to a home investor is the fastest way you can get the money to pay your debts. Unlike placing your home in the market by listing websites, a home investor usually can make you an offer and pay you in cash in as little as seven days.
Opening Doors Properties allows Charlotte residents to save their credit by purchasing their homes fast and regardless of the condition.