When you file for bankruptcy, if you own a home, it becomes part of your bankruptcy estate, which is made up of all the things you own. Twenty-seven percent more people filed for chapter 13 bankruptcy in October 2022 than the year before. Overall, the number of bankruptcies has gone up by seven percent, which is very close to the increase in inflation of seven percent. Many homeowners have too much debt to handle. As money problems caused by things they couldn’t control changed their ability to pay creditors, they realized they had no choice but to file for bankruptcy, which can stop the bank from taking their home.
Chapter 13 is for people whose secured and unsecured debts add up to less than $2,750,000. But chapter 7 is a liquidation process in which the trustee sells your assets to pay off your debts based on your total income, debt, and ability to pay. Most of the time, these homeowners want to sell their homes to solve at least some of their money problems, but they don’t know if they can do that while they are going through bankruptcy.
Even though the rules for the process depend on the type of bankruptcy you file, and the final answer depends on many things, the short answer is yes for most homeowners. So keep reading to find out how to sell your house in Lexington while you are in bankruptcy. Please keep in mind that this article is meant to give you information, not financial or legal advice.
Court Approval
In Lexington, you’ll need to file a motion with the court to get permission to sell real estate or to sell your house during bankruptcy. You should include the selling price, what you plan to do with the money, and the names of anyone who has a lien on the property. With this motion, your creditors and any trustee can object, and the court will decide how any funds will be given out.
Contingency
In a traditional sale, if you want to sell your house during bankruptcy in Lexington, you’ll need to add a clause to the contract that says the sale is contingent on getting permission from the bankruptcy court. But under Chapter 7, the trustee could decide to sell the house if it has a lot of equity that your bankruptcy exemption doesn’t cover. With the money, the trustee pays any secured debts, like the mortgage, gives you the exempted amount you are entitled to, and gives each unsecured creditor an equal share of any leftover money.
Proceeds
When you sell your home and file for bankruptcy in Lexington, you may wonder what happens to any money left over after the mortgage is paid off. A lot will depend on your homestead exemption, of course. But it’s likely that the money will be used to pay off any remaining unsecured debts or to pay for the bankruptcy case.
Scheduled Payments
Under Chapter 13, if you sell your house in Lexington during bankruptcy, you will have to change the way you plan to pay. Depending on how much the sale brought in, you may be able to pay off your plan faster because the money goes straight to the bankruptcy.
Itemized Statement of Payoff
You should ask for an itemized payoff statement to make sure that no fees will come as a surprise after you sell your house in Lexington during bankruptcy.
Bluegrass Investment Properties LLC
Don’t think twice! With low supply and rising interest rates on the horizon, now is the time to cash in on your house. The best way to sell your house during bankruptcy in Lexington is to sell directly to the cash investors at Bluegrass Investment Properties LLC. Bluegrass Investment Properties LLC has a policy of being open and honest about every step of the process. This is because we want you to be able to choose the method of sale that works best for you. So, a cash investor from Bluegrass Investment Properties LLC will show you the costs and possible profits of a traditional listing with an agent versus our offer, which you’ll agree is fair. We do this at Bluegrass Investment Properties LLC because we are your neighbors in Lexington, we care about our community and the people in it, and we want you to feel good about working with us even after the deal is done.
The experts at Bluegrass Investment Properties LLC have dealt with sellers going through bankruptcy before, so they know how to help you. They can give you a guaranteed closing date, won’t charge you any commissions or closing costs, and won’t throw any nasty surprises your way. If you want to avoid the work and costs of getting your house ready to sell on the Lexington real estate market, you can sell it directly to Bluegrass Investment Properties LLC’s cash investors. Bluegrass Investment Properties LLC’s cash investors don’t charge commissions, and there are no hidden fees. So you can put your wallet away and relax. If you sell directly to a cash investor from Bluegrass Investment Properties LLC, you won’t even have to worry about showings. During bankruptcy, a cash investor from Bluegrass Investment Properties LLC will buy your house directly, as-is, for cash. This means you don’t have to do anything to sell your home. Call (859) 321-6618 to get in touch with Bluegrass Investment Properties LLC.