If you own a home at the time of your bankruptcy filing, your home is part of your bankruptcy estate. 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 the amount of debt they have. 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 have the desire to sell their homes to resolve at least some of their financial difficulties but wonder if it is possible during bankruptcy proceedings.
While the rules for the process differ for each type of bankruptcy, and many factors influence the final decision, for most homeowners, the short answer is yes. So read on as we explore how to sell your house during bankruptcy in Volusia County. Please note that this article is for informational purposes, not financial or legal advice.
If you’re considering filing for bankruptcy, it’s important to know that selling your house may not be as difficult as you think. With a little bit of planning and research, you can get through this process with minimal hassle.
Court Permission
You’ll need to file a motion with the court for leave to sell real property or approval to sell your house during bankruptcy in Volusia County. The court can’t help you if you don’t ask, so make sure that you file this motion before the bankruptcy petition is filed. You will want to include the sale price, what you plan to do with the proceeds, and the names of the creditors who have liens on the property. This motion allows your creditors and any trustee to object, with the court determining the disbursement of any funds.
Contingency
In a traditional sale, you must include a contingency clause in your Volusia County bankruptcy home sale contract stating that the sale is contingent upon bankruptcy court approval. 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 Volusia County. Of course, much will depend on your homestead exemption. However, the proceeds of the sale will likely be used to pay the remainder of the unsecured creditors or the costs of the bankruptcy case.
Planned Payments
Under chapter 13, if you sell your house during bankruptcy in Volusia County, you will need to modify your planned payments. Depending on the value of the sale, you may be able to pay off your plan sooner. The proceeds go directly to bankruptcy.
Itemized Payoff Statement
In order to ensure that there are no fees left to surprise you after you sell your home during a bankruptcy in Volusia County, you should request an itemized payoff statement. You’ll need to file a motion with the court for leave to sell real property or approval to sell your house during bankruptcy in Volusia County. The court can’t help you if you don’t ask, so make sure that you file this motion before the bankruptcy petition is filed.
Cash Home Buyer Florida
If you’re considering filing for bankruptcy, it’s important to know that selling your house may not be as difficult as you think. With a little bit of planning and research, you can get through this process with minimal hassle.
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 Volusia County is to sell directly to the cash investors at Cash Home Buyer Florida. Our policy at Cash Home Buyer Florida 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 Cash Home Buyer Florida will detail your expenditures and potential profits from a conventional listing with an agent, vs. our offer, which you’ll agree is fair. At Cash Home Buyer Florida, we’re your neighbors here in Volusia County, care about our community and its people, and want you to feel good about doing business with us long after the deal closes.
The seasoned pros at Cash Home Buyer Florida 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 Volusia County real estate market, a direct sale to the cash investors at Cash Home Buyer Florida is the solution. The cash investors at Cash Home Buyer Florida never charge commissions, and there are no hidden fees.So you can put your wallet away and relax. You don’t even have to worry about showings when you make a direct sale to a cash investor from Cash Home Buyer Florida. For a no-hassle sale of your home during bankruptcy: a cash investor from Cash Home Buyer Florida will buy your house directly, as-is, for cash. Call Cash Home Buyer Florida at (386) 383-2085.