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Selling a property in bankruptcy sounds intimidating, but there are fast and easy ways to do it. If you have a condo, apartment, townhouse, or single-family home that you want to sell after filing for bankruptcy, then this article can help you discover the best ways to move forward.
Chapter 7 bankruptcy is one of the most common types of bankruptcy for individuals to file. This type of bankruptcy involves liquidating assets to pay off creditors. When someone files for a chapter 7 bankruptcy, their valuable property is sold and the money is distributed to the appropriate collectors.
Chapter 9 bankruptcy can only be filed by municipalities, including cities, counties and school districts.
Chapter 11 bankruptcy is mostly used by business and it’s done by reorganization. Reorganization includes changing the amount of monthly payments or even interest rates.
Chapter 12 bankruptcy is for family farmers or fishers who can pay back their creditors within three to five years.
Chapter 13 bankruptcy is another very common form of bankruptcy used by individuals. Chapter 13 allows individuals with a reliable income to slowly pay back their debts.
Chapter 15 bankruptcy is used for foreign debtors when multiple countries are involved in a bankruptcy case.
Once you file for Chapter 7 or Chapter 13 bankruptcy, there are still ways to sell your house. Generally, it’s easier to sell under Chapter 13 than under Chapter 7, but it’s possible under either type of bankruptcy.
Filing for bankruptcy and selling a house is more difficult under Chapter 7 bankruptcy. Because repayments under Chapter 7 rely on the liquidation of your assets, you’ll most likely have to surrender your house. If your house is an exempt property, you can sell it with permission from a bankruptcy court.
Filing for Chapter 13 and selling your house is much more common. Because Chapter 13 allows you to repay your debts using your income, you still own all of your property. However, you must get permission from a bankruptcy court or from your trustee before you proceed with the sale.
If you’re looking to sell your home during bankruptcy or after bankruptcy discharge, then the best way to do it is with a house buying company like Sell My House Fast Houston TX. Our cash house buying company is the best in Houston, TX and the surrounding areas!
We won’t just buy your house for a fair price, we’ll also buy it no matter what condition it’s in, and we’ll buy it after one quick walkaround! We’ll never make repair requests, and you won’t have to deal with appraisals or a lengthy due diligence period.
Our investors offer the fastest turnarounds in real estate. In fact, we close on deals faster than any house buying company in Houston, TX and the surrounding areas. We close on deals within an average of 3 to 30 days, so you can get cash for your property fast.
As a seller, one of the worst feelings is having a deal come crashing down when a buyer can’t get approved for a mortgage. Luckily, you don’t have to worry about the deal falling through when you sell to us. We make cash offers and there’s no mortgage approval process!
Organizing countless open houses and showings is a pain, but you only have to schedule a single quick walkthrough with us before we make you an offer! We take the hassle out of real estate transactions by handling all of the necessary paperwork and making the showing a breeze.
While some real estate agents and brokers will expect you to make last minute payments for additional costs, our contracts are completely free of annoying hidden fees. We pay for the closing costs and all of the fees associated with selling your house.
There are cases where you can sell your house before filing for bankruptcy, but it’s a risky move that can lead to serious legal consequences, including fraud charges. The best option is to follow the rules and go through the legal process. You should also work with a legal team to have your property labeled as exempt.
However, if you’re legally permitted to sell your house, our company can help you do it quickly and without any added stress!
A short sale during bankruptcy is possible, but you must get approval from your trustee in court. You’ll be granted permission if it makes sense to sell the house for less than what’s owed on it and if the money can be used to pay back a lender.
A short sale can be a time-consuming and complicated process, but our investors work with short selling processing companies to make it as fast and easy for you as possible!
How long you have to wait to sell your home depends on where you live. Each state has its own set of laws, but the soonest is usually 30 days after you file for bankruptcy. However, you might have to wait as long as six months.
When you’re finally able to sell your home, selling to our investors is the best option. We help with every step of the process, so you can enjoy a fast and hassle-free transaction.
How much a trustee gets paid can vary greatly, but trustees in Chapter 13 bankruptcy don’t get paid from liquidating your assets, including your home. Instead, trustees will take a percentage of your monthly payments. What percentage they take varies from case to case, but the most they can take is 10%.
Because trustees in Chapter 13 bankruptcy get paid from monthly payments, they won’t take money from the sale of your home. However, if the sale leads to higher monthly payments to collectors, then the trustee will also receive more money.