Selling a property while going through bankruptcy may not be as easy as one may hope, as it involves a lot of extra paperwork and time for appropriate approvals. This article will guide you through what to expect if you’re considering selling a house after filing for bankruptcy.
In a Chapter 7 bankruptcy, a court-appointed trustee gathers and sells the debtor’s nonexempt assets and distributes the proceeds of the sale to creditors. After the proceeds are exhausted, the court discharges the remaining debt.
This type of bankruptcy enables financially distressed municipalities to get protection from creditors while developing and negotiating a plan for the adjustment of debts.
This type of bankruptcy is typically used by large businesses to maintain their assets and continue regular operations while a plan of reorganization is proposed to creditors.
Chapter 12 bankruptcy benefits family farmers and fishermen by allowing them to propose and carry out a plan to repay all or part of their debts.
In a Chapter 13 bankruptcy, an individual must have enough income to afford a repayment plan that usually lasts three to five years. Debtors get to keep the property as long as they make the monthly payment.
This type of bankruptcy provides a mechanism for dealing with cross-border insolvency cases. It seeks to promote cooperation among U.S. courts and other stakeholders with interest in foreign proceedings involving assets and creditors in several countries.
It is very difficult to sell a home while in Chapter 7 bankruptcy, and you’ll only be able to do so once you get specific permission from the bankruptcy court.
If you want to sell your house, you will need to file a Motion to Sell Real Property. This should include detailed information like the selling price, names of the creditors, and the planned distribution of the proceeds. If the court-appointed trustee will want to sell your property to generate cash for creditors, he or she must also get the approval of the court.
Selling a house while going through a Chapter 13 bankruptcy is possible. It is best to consult with legal experts to ensure that you make the right moves.
You will have to obtain the approval of the trustee and permission from the court for the sale to move forward. Your attorney will help you file a Motion to Sell Real Property. This motion includes a proposed plan for the sale price and how the proceeds will be used. Some of the proceeds may be used to pay off your repayment plan.
Worried that you may not be able to find a buyer for your property in bankruptcy? San Antonio House Cash Offers will help you avoid the hassles and uncertainties by making a fair cash offer on your home.
We have worked with hundreds of clients in San Antonio, Texas and the surrounding areas who have been in a similar situation. We’ll make the home selling experience easier and faster for you.
We’ll buy your condo, apartment, townhouse, or any other property in its exact condition. You won’t need to clean up or make any repairs. Our fair cash offer takes into consideration the cost and extent of any renovations.
You don’t have to wait for months when you work with us. Our years of experience show that we seal deals within 3 to 30 days on average. We’ll work fast to get cash in your hands as soon as possible.
We are not at the mercy of banks. We actually have the cash to buy your property outright. This means you’ll get a faster closing and avoid the complications that come with a traditional home buyers loan application. We are credible cash property buyers who don’t need to qualify for a loan and won’t back out of the deal at the last minute.
No need to prepare your property or fix it up for multiple showings. We’ll only need one brief walkaround to evaluate your property and make a cash offer. We’ll also be responsible for getting all the paperwork done.
Never Pay for Commissions or Hidden Fees
There won’t be any surprise expenses, commissions, or hidden fees deducted from your profit. You can trust us to cover all closing costs and any other fees associated with the transaction.
There are considerable risks involved when selling a house before filing for bankruptcy, and it may not be a wise decision depending on several factors. If you do not handle the sale the proper way, you may end up jeopardizing your bankruptcy discharge. For example, committing fraudulent transfers to hide property from your creditors is considered a bankruptcy crime.
Consult with legal experts who can help you get approval from the bankruptcy court so you can sell your property. Once you get permission, contact us and we’ll help you with an easy and hassle-free sale.
A short sale during bankruptcy is possible but it depends on the approval of the bankruptcy trustee. The trustee will have to review the short sale proposal – including details of the current home value and selling price – and give time for creditors to assess whether to object to it or not.
If you get permission to pursue the short sale, we’ll help you fast track the process and work with the most professional short sale processing companies in San Antonio, Texas. We’ll ensure clear and constant communication with the bank to get you to closing fast.
It will be easier to sell a property after a bankruptcy discharge. The time frame for selling a property after filing for bankruptcy, however, varies among states so it’s best to check the specific laws in your area.
There are instances when the bankruptcy court approves the sale of a property 30 days after the filing of the case. In other cases, it may take up to six months before the debtor can sell the house.
We’ll give you the speed and convenience that you need if you choose to sell your home to us as soon as the court permits the sale.
A Chapter 13 trustee gets a percentage of the monthly payment you make under the bankruptcy case. Under the law, a Chapter 13 trustee is entitled to a maximum of 10% of the plan payment. The trustee is expected to use the money to cover the expenses associated with the case and the costs of running his or her office.