Selling a property while in bankruptcy can be overwhelming, but it offers relief to those who are facing serious debt. From this article you will learn if you can sell your property after filing one of the most common types of bankruptcy: Chapter 7 or Chapter 13.
Chapter 7 bankruptcy, also called liquidation bankruptcy, helps individuals pay creditors through the sale of any assets that are not exempt. After the bankruptcy is discharged, you will still be liable for any other debts that were not covered.
This type of bankruptcy applies only to municipalities. It allows municipalities to get protection from creditors while they devise a plan to reorganize and resolve debts.
This is a reorganization plan most often used by large businesses to reorganize their debts. It gives opportunities for businesses to keep operating while restructuring their finances to pay the bills and stay afloat.
This type of bankruptcy provides relief for family farmers and family fishermen in debt. It enables them to reorganize their debt and propose a seasonal repayment schedule over a three- to five-year period.
In a Chapter 13 bankruptcy, individuals with a regular income use the wage they earn to repay all or parts of their debt in exchange for keeping their property. The individual must pay the mortgage under a three- to five-year settlement plan.
This type involves international bankruptcy issues. It enables foreign debtors to gain access to U.S. bankruptcy courts and get protection for their assets in the States while they are engaged in foreign insolvency proceedings.
During a Chapter 7 Bankruptcy case, you will not be able to do anything with your property without the approval of the trustee and bankruptcy court.
You will need to file a formal Motion to Sell Real Property. Important details like the selling price and how you plan to go about the proceeds of the sale must be included. In some instances, a trustee will want to sell your home to generate cash for creditors. The trustee will also have to get the permission of the court.
Work with an experienced lawyer who can help you complete a great deal of paperwork involved in selling your house while in Chapter 13. You must give your attorney enough time to negotiate the sale with your trustee.
Your lawyer will draft a Motion to Sell Real Property for approval by the bankruptcy court. It includes a proposal on how the proceeds from the sale will be distributed and used. Notice must also be given to all your creditors. Once this document is approved, the sale can move forward.
If you’re going through a bankruptcy and want to get your house sold in a fast and efficient manner, then working with Houston Cash Home Buyers is your best option. We have helped hundreds of clients in Houston, Texas and the surrounding areas by offering a fair and competitive price and purchasing their properties fast for cash.
We buy properties in any and all conditions. No need to worry about making repairs to that condo, apartment, or townhouse you’re looking to sell. You’ll benefit from a simple process that lets you avoid any unnecessary spending. Leave the renovations and cleaning to us.
You’ll save time and money when selling to us, as we typically close deals within 3 to 30 days. We’ll work diligently to get the stress out of selling your home and get money in your pocket as soon as possible.
You won’t have to suffer through frustrating delays caused by bank transactions. We don’t rely on traditional bank financing, as we have our own resources to purchase properties fast for cash. You’ll enjoy the peace of mind that comes from knowing that we won’t back out at the last minute.
We make the process easy for you by taking care of all the paperwork. We take out all the inconveniences of open houses or multiple showings by requiring only one brief walkaround to evaluate your property and make a no-obligation fair cash offer.
There are no commissions nor any hidden fees when selling your home to us. We’ll relieve you of the burden of your property and its payments by closing fast at no cost to you. We’ll be responsible for closing costs and any other expenses associated with the transaction.
Selling your home before filing for bankruptcy comes with a lot of risks, and it may get you in trouble with the courts if you do not follow specific guidelines. You have to ensure that you sell the property for legitimate purposes. Fraudulent acts – including any attempt to hide from or hinder creditors – will have dire consequences.
It’s best to go through the legal process. Once you get permission to sell your home, contact us and we’ll help you with a fast, easy, and convenient sale.
There are certain instances when it makes sense to do a short sale of your house during bankruptcy. More often than not, it depends on the approval of the court trustee. It may be better to have a short sale on your record rather than a foreclosure, as it mitigates additional costs and fees. Consult with legal experts when seeking the approval of a bankruptcy court for the short sale.
We make the short sale process more convenient for you by working with leading short selling processing companies who can ensure a fast and sure transaction.
You can sell your home immediately after the bankruptcy case is closed. Selling a home during bankruptcy, however, requires you to allot more time to get approval from the court. Consult with your attorney as different states have different laws on the timeline for selling a house while in bankruptcy. It may take sellers anywhere between thirty days to six months after filing for bankruptcy before they can sell their property.
We’ll be happy to give you a fair cash offer and guide you through the whole process once you obtain permission from the court to sell your home.
A percentage of the monthly plan payment under Chapter 13 bankruptcy goes to the trustee. He or she uses the funds to cover the costs associated with running the office and administering the case. A bankruptcy trustee can only collect a maximum commission of 10 percent of your plan payment.