Filing for bankruptcy can have dramatic effects later on in your life. It will leave a black tarnish on your credit report which can make it very hard to secure a loan in the future. Effectively filing for business bankruptcy in Chicago is the last option, the final straw, the card you play when you have no others in your hand. But, there are some ways to avoid filing for bankruptcy. It is recommended that you always try one of the following methods before you contact an attorney about a business bankruptcy in Chicago. Make bankruptcy your final choice, as it can affect your future.
Tip 1: Close Down
This is one of the most radical options, but does leave you in a better situation having closed down on your own accord and have not been forced to be lenders. Closing down correctly is a complicated line of action, however. Once you’ve shut down, sold off all the assets and signed all the right paper work, you release yourself from any liability with the closed company. This is really the final resting place, and if you’re at this point, reach out to an attorney, then bankruptcy might be a better option in this case.
Tip 2: Speak With Your Lenders
This step is often missed, but can help turn the situation around. Speak with your main lenders about your finical distress and let them know you are thinking about filing for bankruptcy. The last thing the lender wants is you to file for bankruptcy, as it will legally wipe all debt you owe to them. Instead, discuss options to help you out. Most banks will either lower monthly repayments and interest rates to help you out your finically stressful time.
If you cannot come up with any deals, then try to pay it all off with one lump sum. Paying almost all your money back to lenders to get rid of a debt is always better than filing for business bankruptcy in Chicago.
Tip 3: Sell Off Your Property
Selling off your property and assets when you begin to notice your inability to repay your debts does take a lot of foresight, but also can massively resolve any future issues leading to bankruptcy. If you able to get rid of big chunks of debt before they get over the top, you leave yourself in a much stronger position then you’ll find yourself in after bankruptcy.
Thinking about filing for business bankruptcy in Chicago? Contact Chicago Debt Solutions at website to speak with an attorney. You can also call them at 312-445-9106.
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