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Selling a property by yourself is challenging enough, but doing it while in bankruptcy can be very tricky. This article provides helpful information on the steps you need to take so you can come up with the best decision when selling a house after filing for a bankruptcy.
Also known as liquidation, Chapter 7 bankruptcy involves the sale of the debtor’s nonexempt assets. The trustee sells the assets and distributes the net proceeds to the creditors.
This type of bankruptcy provides protection for municipalities. It enables municipalities to negotiate with creditors by developing a comprehensive plan to adjust debts and resolve liquidity issues.
Chapter 11 bankruptcy is most often used by large corporations but it can also be filed by individuals. This type enables businesses to reorganize while maintaining their assets and keeping regular operations.
This type is for family farmers and family fishermen with regular annual income. It allows financially distressed family farmers and fishermen to pay off debts through a repayment plan.
Debtors with a regular source of income may use Chapter 13 bankruptcy to repay some or all of the debt through a repayment plan. The monthly payments may last three to five years.
Chapter 15 deals with cross-border bankruptcy and insolvency cases. It provides a framework that gives foreign debtors access to U.S. courts and encourages cooperation among courts of various jurisdictions to administer the assets of the debtor.
It is difficult to sell a home after filing for Chapter 7 bankruptcy because you need to convince the court that the sale will not prejudice any creditor. You and your lawyer must file a Motion to Sell Real Property with the court. The motion should include details about the selling price and how the debtor plans to use the proceeds of the sale. A trustee may also want to sell your house to satisfy creditors’ demands. He or she must also obtain permission from the court for the sale to move forward.
You get to keep your assets while going through a Chapter 13 bankruptcy but you have no control over them. This means that you need to get permission from the bankruptcy trustee and the court when selling your house. Work with your attorney to file a Motion to Sell Real Property. All pertinent details of the sale – including the selling price, names of the creditors, and information on how the proceeds of the sale will be distributed to creditors – must be included in the formal motion.
Austin Cash House Buyer will help you find relief when you’re dealing with bankruptcy. We have worked with hundreds of clients in Austin, Texas and the surrounding areas who have been through a similar situation.
We can make you a cash offer so you can sell your home quickly and avoid the hassles, fees, and time it can take to list your property on the market.
Whatever the issue or condition your condo, townhouse, apartment, or any other property is in, we’ll be interested to buy it. No need to worry if it’s in bad shape or make any costly repairs just to be able to sell. We can purchase the property as-is and fast.
We are committed to buying properties through an easy, simple, and hassle-free process. We are professional home buyers who close deals within 3 to 30 days on average. We’ll work with you every step of the way to ensure a convenient home selling experience.
You won’t have to deal with waiting for buyer’s mortgage approval or the anxieties of whether or not your property will actually sell. We can close quickly because we do not rely on traditional financing. We have the funds ready to purchase your home directly from you.
We’ll deal with all the paperwork from beginning to end to ensure a smooth transaction. We also won’t require you to prepare the home for multiple showings. One quick walkaround is all we’ll need to assess your property and make you a fair cash offer.
We’ll help you get to closing fast at zero cost to you. We won’t bother you with any commissions or hidden charges. We’ll cover all closing costs and any other fees associated with selling your property.
Selling a house before filing for bankruptcy may be allowed in certain cases but it comes with great risks. You must carefully consider your situation and all the requirements to ensure that you do everything right. You will face severe consequences if you mishandle the sale or use it as a way to avoid paying creditors.
It’s best to move through the process legally and seek bankruptcy protection. Contact us once you are allowed by the bankruptcy court to push through with the sale and we’ll help you with options to navigate your situation.
A short sale during bankruptcy is possible as long as the trustee and the bankruptcy court approve of the process. Your lawyer must provide the bankruptcy trustee with a short sale proposal that includes the current value of the property and the selling price. It will take about 14 days for creditors to decide whether to object to it or not.
Once you obtain the go signal, we’ll help fast track the short sale for you by working with the most professional short sale processing companies who ensure clear and constant communication with the bank.
After a bankruptcy discharge, you’re free to sell your home immediately. You will have to wait for weeks, however, if you wish to sell your property during a bankruptcy. It’s best to check with the laws in your area as the timeline varies from state to state. Some may permit the sale of the property 30 days after filing the case. Other cases may require you to wait for three to six months after filing before a sale may happen.
We’ll provide you with a fast and straightforward way to sell your home once you get permission from the bankruptcy court.
In a Chapter 13 bankruptcy, the trustee may get a maximum of 10% of your monthly payment plan. The trustee uses the funds to cover the costs of handling your case and the costs of running his or her office.