If you own a home when you file for bankruptcy, it becomes part of the bankruptcy estate, the property or assets you own. In October of 2022, there was a twenty-seven percent increase in chapter 13 bankruptcy filings over the previous year. Bankruptcies, including all chapters, total a seven percent increase overall, which correlates strongly with the seven percent increase in inflation. Many homeowners are overwhelmed by their debt. As financial issues due to circumstances beyond their control changed their ability to pay creditors, they find they have no option but to claim bankruptcy, which can stop a foreclosure on their primary residence.
Those with secured and unsecured debts totaling less than $2,750,00 are eligible for chapter 13. However, chapter 7 is a liquidation process in which the trustee sells your assets to pay debts based on your total income, debt, and ability to repay. Often, these homeowners want to sell their houses to solve at least some of their financial difficulties but wonder if it is possible during bankruptcy proceedings.
While the rules for the process may differ for the type of bankruptcy you file under, and many factors influence the final determination, for most homeowners, the short answer is yes. So read on as we explore how to sell your house during bankruptcy in Elkton. Please note that this article is for informational purposes, not financial or legal advice.
Court Permission
Before filing the motion, make sure you are familiar with all rules and regulations related to the sale of real property during bankruptcy. It is important to be aware of any deadlines or other requirements that may apply in your particular case. You should also research local real estate markets to determine an appropriate selling price for the property.
Once the motion has been filed, you will receive notice from the court with further instructions on how to proceed. Generally, creditors must be given at least 15 days’ notice before a sale can occur so they have time to object if necessary. If there are no objections after this period, then the court is likely to grant permission for you to sell the home and use proceeds as outlined in your motion.
Contingency
In a traditional sale, you’ll need to add a contingency clause to the contract to sell your house during bankruptcy in Elkton, stating that the sale is contingent upon obtaining bankruptcy court permission. However, under chapter 7, the trustee may determine to sell the house if your home has high unprotected equity under your bankruptcy exemption. With the funds, the trustee pays any secured debts like the mortgage, provides you with the exempted amount you are entitled to and then satisfies any unsecured creditors with a pro ratio share of any remaining funds.
Proceeds
You may wonder what happens to any proceeds after the mortgage is satisfied when you sell your house during bankruptcy in Elkton. Of course, much will depend on your homestead exemption. However, the proceeds will likely go towards paying any remaining unsecured creditors or paying for the bankruptcy case.
Planned Payments
Under chapter 13, if you sell your house during bankruptcy in Elkton, you will need to modify your planned payments. Depending on the realized sale value, you may pay your plan off earlier as the proceeds go directly towards the bankruptcy.
Itemized Payoff Statement
To ensure no fees remain to surprise you after you sell your house during bankruptcy in Elkton, you should request an itemized payoff statement.
TCJ Investment Properties LLC
Don’t hesitate! With competition still driven by low supply and rising interest rates on the horizon, now is the time to cash in on your house, and the best way to sell your house during bankruptcy in Elkton is to sell directly to the cash investors at TCJ Investment Properties LLC. Our policy at TCJ Investment Properties LLC is full transparency through every step of the process because we want you to decide which sales method works best for your situation. To that end, a cash investor from TCJ Investment Properties LLC will detail your expenditures and potential profits from a conventional listing with an agent, vs. our offer, which you’ll agree is fair. At TCJ Investment Properties LLC, we do this because we are your neighbors here in Elkton, we care about our community and the people in it, and we want you to feel good about working with us long after the deal is closed.
The seasoned pros at TCJ Investment Properties LLC have experience with sellers going through bankruptcy and have the solution you seek, providing you with a guaranteed closing date, charging no commissions or closing costs with no unpleasant surprises. If you’d like to avoid the work and out-of-pocket costs of prepping your house to list on the Elkton real estate market, a direct sale to the cash investors at TCJ Investment Properties LLC is the solution. The cash investors at TCJ Investment Properties LLC never charge commissions, and there are no hidden fees. So you can put your wallet away and relax; you won’t even need to worry about showings when you make a direct sale to a cash investor from TCJ Investment Properties LLC. For a no-hassle sale of your home during bankruptcy: a cash investor from TCJ Investment Properties LLC will buy your house directly, as-is, for cash. Call TCJ Investment Properties LLC at (302)729-3022.