I have a friend who started a business a few years back. He invested almost every dollar to his name into this pursuit, and for a while, things went well. Then the country went through that economic crisis, and he was one of the many that just couldn’t recover.
It was hard to see him go through the struggle. He couldn’t pay his employees, he couldn’t pay the rent on his building, and ultimately, he was days away from filing for bankruptcy. I advised him to sell his home and use the cash to get out of the massive hole he was in. Luckily, he did, and he was able to recover and keep the banks from going after everything he owned.
It’s not a unique story. According to Forbes, 80% of businesses fail within the first 18 months. As a business owner myself, I have the utmost respect for anyone who starts a company and strives to accomplish a dream. So I hate it when things don’t go well.
If you’re facing Chapter 11, I’m here to help you.
The Dangers Of Bankruptcy
You probably already know that filing for bankruptcy is a very serious situation. But maybe you don’t know the details regarding how it can affect your life. Let’s take a look.
- Credit Score: Bankruptcy can stay on your credit report for up to 10 years. It can drop your average anywhere from 160 to 220 points.
- Employment: It’s illegal for employers to ask about your credit in a job interview, but they can legally run a credit check on potential employees. Seeing bankruptcy on your credit history could keep you from getting that new job.
- Housing: If you filed for bankruptcy you will have trouble securing a mortgage to purchase a house or even securing an apartment to rent.
- Your State of Mind: This is one of the less talked about effects of bankruptcy, but it shouldn’t be overlooked. Many people struggle to come out of the depression bankruptcy causes, and relationships and health can suffer.
The San Diego Real Estate Market
As a homeowner, you now have options before filing. But a look at the numbers might give you some hesitation.
According to Zillow, the median list price for a home in San Diego is $629,000. But Trulia claims that the median sale price is only $515,000. That’s more than a $100,000 difference between what you want and what you actually get.
You also need to keep in mind that houses take on average 60 days to sell in San Diego, and even if you do get an offer, there’s no guarantee that the deal will ever go through. Once a house gets under contract, the real work begins. The house needs to pass inspection. It needs to get appraised. Then the agents go back and forth trying to negotiate the contract.
And if the potential buyer isn’t happy, oftentimes they walk away. Then you have to go back on the market and start from square one.
Since time is a luxury you don’t have when facing bankruptcy, putting your house on the open market is a very risky move.
Don’t File For Chapter 11 – Let Sell Your House Direct Help You Now
Sell Your House Direct has been helping homeowners in situations like this for over five years. We’ve handled over 5,000 transactions and helped hundreds of families move on to new chapters in their lives. Our easy, four-step process has made us one of the most trusted names in real estate, and with our people-first approach, you can rest assured that we will make you a fair cash offer within 24 hours of getting your call. There are no hidden fees, no commissions to pay, no stressful waiting, no dealing with agents, no dealing with picky buyers—and no headaches to suffer. So make sure you call us today so you can avoid filing for bankruptcy and get your business back on track.Views: 10