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Selling a property in bankruptcy is a process that involves plenty of challenges and potential problems. Filing for bankruptcy and selling a house, condo, apartment or townhouse requires legal now-how, and the process can easily seem intimidating. The following article will help you discover the best way to proceed.
Chapter 7 bankruptcy is one of the most well-known and common types of bankruptcy. It can be used by individuals who want to liquidize their assets to pay off all collectors.
Chapter 9 bankruptcy is for large municipalities, such as cities and smaller towns. Using Chapter 9, municipalities can reorganize their finance to address their debts more effectively.
Chapter 11 is for businesses, and anything from large corporations to small sole proprietorships can file this type of bankruptcy.
Chapter 12 is used by “family fishermen” and “family farmers” so that they can pay back any outstanding debts over a period of three to five years.
Like Chapter 7, Chapter 13 bankruptcy is an extremely common form of bankruptcy for individuals. Instead of liquidating assets, individuals with consistent income file for Chapter 13 and pay off their debts slowly on a monthly basis.
Chapter 15 is for cases that involve foreign debtors who have assets in multiple countries.
Although selling your home after filing for Chapter 7 bankruptcy isn’t a common route, it is possible if you follow the correct legal steps. Many people don’t get a chance to sell their home during Chapter 7 because home foreclosures often happen during asset liquidation.
However, if your property is exempt from liquidation, then you will still own the property and can sell it. In order to move forward with the selling process, you’ll have to bring the matter to a bankruptcy court and receive permission from your trustee.
Filing Chapter 13 and selling your house is a more common option because this type of bankruptcy allows individuals to avoid asset liquidation in exchange for monthly payments. You’ll still own your home when filing Chapter 13 bankruptcy, so you’re able to sell it during the process. However, you’ll still need permission from your trustee or bankruptcy court before selling.
When you want to sell your home after filing for bankruptcy or after bankruptcy discharge, it’s important to work with professionals who can help you throughout the process. Cleveland Cash House Buyer is the best home buying company in Cleveland, OH and the surrounding areas!
We buy homes in any condition, and no amount of damage can scare us away! We’ll make you a fair cash offer for your home as is. Plus, there’s no appraisal necessary. We just need a quick walkthrough to assess the property’s value. No repair requests or due diligence periods!
We close on deals in an average of 3 to 30 days, making us the fastest house buying company in Cleveland, OH and the surrounding areas. When you want to get money for your property ASAP, our investors are ready to buy!
When you’re ready to sell your home, you can get a cash offer from our investors. We don’t work with traditional banks and there’s no uncertain mortgage approval process. Our investors use private funds and hard money lenders, so they always have the money ready to go.
Our company offers hassle-free real estate transactions every time. You don’t have to worry about organizing open houses or scheduling countless showings when you can sell to us after one quick walkthrough! We’ll even handle all of the paperwork once you accept our cash offer.
We pride ourselves on always being trustworthy and honest, and that means never using hidden fees or adding on last-minute expenses. Our investors will also pay for all of the closing costs and associated fees.
It’s important to understand that there are many risks involved in selling your house before filing for bankruptcy. First of all, selling your home before filing for Chapter 7 with the intent of avoiding paying your lenders could lead to very serious fraud charges.
However, some homeowners are able to legally sell before they file as long as they follow the correct procedures. If you’re permitted to sell your house, we’ll buy it in a simple and hassle-free transaction.
It’s not uncommon for a homeowner to pursue a short sale during bankruptcy. In order to do so, the bankruptcy court and the trustee must first give their approval. Once they decide that the sale will benefit you and your lenders, you’ll be allowed to continue.
Our investors can help you with every step of the selling process. We team up with local short selling businesses to fast track the process so you can get money for your house fast.
You can sell your home as soon as your bankruptcy period is over. However, that period can vary in length, and each state has its own unique bankruptcy laws. The minimum amount of time you have to wait is usually 30 days, but you may need to wait up to six months.
Our investors are ready to help once the court grants you permission to sell. We make the entire process straightforward, stress-free and as easy as possible.
When you sell your home during Chapter 13 bankruptcy, the trustee won’t receive a percentage of the sale price. Chapter 13 bankruptcy involves monthly payments, not asset liquidation.
The trustee receives anywhere from 3% to 10% of your total monthly payments. If you sell your home and decide to increase your monthly payments, the trustee will also receive a higher monthly fee. However, the trustee isn’t entitled to receive any additional payments as a result of you selling your assets.