Can I Sell My House In Bankruptcy?
The answer is maybe. It depends on the type of bankruptcy, whether it is Chapter 7 or Chapter 13.
What Is Bankruptcy
Filing for Bankruptcy means you legally declare that you cannot afford to pay your debts. Bankruptcy is a way to help people who can no longer pay their debts and allows a fresh start by creating a repayment plan and or liquidating assets to pay their debts. Chapter 7 and 13 are two chapters that deal with Bankruptcy. If you are contemplating bankruptcy, you may want to consult an attorney to see which option best fits your situation.
If you’re facing bankruptcy, you are most likely wondering what will happen to your house. Below is a quick rundown of your options:
Chapter 7 is known as liquidation bankruptcy, which means you are selling off your property to pay your debts. This type of bankruptcy eliminates most of your debts, but you may have to give up some of your assets, including your house. The proceeds from the sale will go towards paying off your creditors, which means you won’t get to keep any of the money.
However, if you’re unable to sell your house or if the sale doesn’t cover the full amount of your debt, you may be able to negotiate a settlement with your creditors. This would allow you to pay off your debt for less than what you owe, which could be a better option than letting your house go into foreclosure. Of course, before making any decisions, it’s best to speak with a bankruptcy attorney to find out what options are available to you.
Chapter 13 gives you a chance to keep your property and you must complete a repayment plan given to you by the courts. This type of bankruptcy reorganizes your debts and allows you to keep your property, but you’ll have to make payments on your debts for three to five years and it is a long and complicated process.
The good news is that you have a few options when it comes to keeping your home during bankruptcy. One option is to reaffirm the debt. This means that you agree to continue making payments on your mortgage and remain liable for the debt even after your bankruptcy is discharged.
Another option is to surrender the property. This means that you give the property back to the lender and walk away from the debt.
Finally, you can keep making payments on your mortgage and maintain ownership of your home. Of course, this option requires that you have the financial ability to continue making payments.
However, if you’ve filed for Chapter 13 bankruptcy, then you’ll need to get permission from the bankruptcy court before you can sell your house. Again, if you are contemplating bankruptcy, you should speak to an attorney that specializes in bankruptcy.
If you are facing Bankruptcy, and you either must sell or you want to sell and start over, you have a couple of options: Sell with an Agent or sell yourself to a ‘We Buy Houses’ cash buyer. Below is a comparison chart to help you decide the best option for you.
|Commission||Showings||Repairs||Home-inspection||Duration||Seller Costs||Appraisal/Loan Contingency|
|Sell with an Agent||Yes: 6%|
|Yes: 1-2%||Yes and Yes|
|Sell to a Cash Buyer||No||No||No: Purchase AS-IS||No||7 Days||No||No: Cash Purchase|
If you’re considering bankruptcy, it happens to the best of us, and you are not alone. You might be wondering what will happen to your home. After all, your house is probably your most valuable asset. The good news is that you have a few options when it comes to keeping your home and or selling your home, during bankruptcy.
If you are contemplating selling your home, We Buy Any House In California is here to help. We want to buy your home and hope we can be your first choice during this challenging time. We buy houses in any condition, any reason and any situation, we will have a solution for you.
If you are still deciding which option is the right choice for you and you need to get to get to know us a little better, please visit our About Us and our pages for more information on how we put together offers.