Bankruptcy devastates homeowners across the country. Is it possible to get out of debt and start fresh?
You might stress over the details, thinking, “I really need to sell my house fast in Pooler, Georgia.” If so, you’re in the right place. Below, Home Buyers of Savannah discusses selling a house during bankruptcy and how to go about it.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is typically filed by individuals whose income allows them to partially repay their debts while still being able to maintain homeownership. However, some homeowners may decide to sell their property instead. This could be due to the property accumulating more debt than it’s worth or because it’s an additional property they no longer wish to keep.
If you only own one home and can meet the payment requirements, you might follow your debt repayment plan. However, in certain situations, selling the property can become a more attractive option.
How To Go About Selling a House During Bankruptcy
Have you already exhausted other avenues, like applying for a financial hardship exemption? You might feel pressure to get rid of the asset you can’t keep up with. Let’s see how you can financially benefit from this move.
Get Court Approval
First and foremost, selling a house during bankruptcy comes with a court-approval requirement. The bankruptcy judge overseeing your case must give the go-ahead, after which you edit the contract of sale.
Communicate With Your Trustee
The trustee designs and applies your repayment plan for the institutions that hold your debt. It oversees how you manage other valuable assets through a sale or refinancing, so you must state your intentions and get trustee permission alongside court approval. If your trustee allows you to move forward with the home sale, it will ultimately delegate
the sale profits’ distribution to ensure your creditors receive what you owe them.
Work With a Bankruptcy Attorney
Pooler homeowners dealing with bankruptcy should always discuss their plans and communicate with lawyers who specialize in bankruptcy cases. Your attorney can facilitate proper communication between you and the court system or trustee and help you work out a home equity protection plan. That way, you can receive more of the amount that you already paid following the sale closure.
Fulfill the Debt Repayment Plan With the Sale Funds
You’ll make the sale if your trustee and the court allow it. Any profits you receive will likely go toward your debt repayment plan to cover what you still owe your creditors. Your trustee will oversee this exchange.
You must also work with your attorney to communicate all the transaction details, including:
● Final selling price
● Property value appraisal
● What portion goes toward home equity vs. debt repayment
Want to sell your house quickly to leave bankruptcy behind? Explore an as-is cash offer.
Home Buyers of Savannah Will Purchase Your House in Pooler, GA, No Matter the Circumstances
Selling a house during bankruptcy is painful, but Home Buyers of Savannah can soften the blow. When we are buying a house from you, the reason you’re selling won’t matter. Call 912-513-8744 to request a cash offer in Pooler, Georgia, today!
