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When bankruptcy becomes your best option, you might consider selling your condo, townhouse, apartment or single-family house. But how do you go about selling a property in bankruptcy? This article will guide you through the best way of filing for bankruptcy and selling a house with minimum effort and stress.
If you’re looking for one of the most common forms being filed by individuals, it’s Chapter 7 bankruptcy. Many people choose this option because they can pay off their debts quickly by selling off assets.
Municipalities that want to reorganize large debts file Chapter 9 bankruptcy. Any type of municipality can file Chapter 9, from small school districts to large cities.
Chapter 11 can be filed by any type of business. Large corporations and sole proprietors alike can file Chapter 11 to try to renegotiate the terms of their debts.
Chapter 12 bankruptcy is designed to give family farmers and fishermen three to five years to pay off debts.
If an individual has a reliable form of income, they might choose to file Chapter 13 over Chapter 7. Chapter 13 bankruptcy allows you to pay off debts in monthly payments to lenders and a trustee.
Chapter 15 is used when a debt involves multiple countries and international businesses.
It’s generally more common to sell your property either during Chapter 13 bankruptcy or after bankruptcy discharge. However, individuals filing Chapter 7 can still sell their homes in the right circumstances.
It’s more difficult to sell your home during Chapter 7 because of asset liquidation. In short, your home might be sold off to pay outstanding debts. If your home is protected from foreclosure, then you may be able to sell it during the bankruptcy period. You’ll have to work with a legal team and get the go ahead from the bankruptcy court.
Filing Chapter 13 and selling your house is a more common route, and there are many people who decide to sell their homes during Chapter 13. In order to sell, you’ll still have to receive permission from your court trustee and the bankruptcy court.
If you decide that selling your home during bankruptcy is the best option for you, you’ll want to work with the best real estate professionals. Sell House Fast Los Angeles CA is the top cash house buying company in Los Angeles, CA and the surrounding area.
Scheduling appraisals, receiving repair requests and working through due diligence periods all add unnecessary stress to an already stressful situation. That’s why we choose to skip those steps and make an offer for your property As Is. All we need is one walkthrough and we’ll make our cash offer.
Not only are we the best house buying company around, we’re also the fastest. We don’t waste time when it comes to buying property. Our investors close on deals within 3 to 30 days on average. That means you can walk away with cash for your property in no time.
We make cash offers for all property and we always have the money ready to go. We never have to rely on getting a mortgage approval, so when you accept our offer, you can rest easy knowing the deal won’t fall through at the last step.
Sell directly to our investors and skip the hassle that comes with selling on the market. Why organize countless showings when you can schedule one with us? Not only will we buy your house after seeing it once, we’ll also take care of all of the complicated paperwork.
We’re known for our honest contracts that reflect our integrity as a business and our loyalty to our clients. We’ll never ask you to pay for additional costs and we’ll never sneak hidden fees into our purchase agreements. We cover all expenses, including all of the closing costs.
If you plan on selling your house before filing for bankruptcy, you need to understand the legal implications. Selling before filing can be risky, and if your intentions include avoiding paying your debts, you could face fines or jail time.
Always consult a lawyer before taking any action. However, if you’re legally permitted to sell, we can make the process stress-free. We’ll buy your house As Is, so you can sell it fast and get the money you need ASAP.
Yes, a short sale during bankruptcy is often a good choice for many people. Like any other house sale during bankruptcy, you’ll have to get it approved by your trustee or the court.
If the court determines that the sale makes sense for everyone, you can pursue it. We work closely with short sale processing companies to help make the sale smooth and easy. We’ll also communicate with your bank so that the sale isn’t rejected at the last step.
The waiting time is different for every state, so you need to learn what the specific laws are where you live. Expect to wait about three months, although waiting times can range from 30 days to six months.
When it comes time to sell, you’ll want to sell quickly. We can make a cash offer and close on the deal in 3 to 30 days on average. There’s no need to wait around any longer when you sell to us!
A Chapter 13 bankruptcy trustee will take a percentage of your monthly payments, but you won’t have to pay them extra when you sell your home. The percentage your trustee makes will be agreed upon when you sign the bankruptcy forms, and it can range anywhere from 3% to 10%.
Your court trustee might decide to increase your monthly payments after the sale of your house, but they’ll still receive the same percentage.