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. Selling your home during bankruptcy in Buffalo can seem overwhelming, but it doesn’t have to be. If you are in financial distress and have filed for bankruptcy, selling your house can be a strategic way to relieve some of your debt and move toward financial recovery. However, the process can be complicated, and it’s important to understand how bankruptcy law affects your ability to sell your home. Here’s what you need to know about selling your house during bankruptcy.
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 Buffalo, NY. Please note that this article is for informational purposes, not financial or legal advice.
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 Buffalo, NY. You will want to include the selling price, your plans for the proceeds, and names of creditors holding liens on the property. This motion allows your creditors and any trustee to object, with the court determining the disbursement of any funds. Before taking any steps to sell your home, it’s crucial to consult with a bankruptcy attorney. Your attorney can guide you through the process and help ensure that selling your home will not interfere with your bankruptcy case. They will help you understand whether you need court approval, what type of exemptions apply, and how to protect your interests during the sale. A bankruptcy attorney can also help you navigate any complications that may arise.
Contingency
In a traditional sale, you’ll need to add a contingency clause to the contract to sell your house during bankruptcy in Buffalo, NY, 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 Buffalo, NY. 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 Buffalo, NY, 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 Buffalo, NY, you should request an itemized payoff statement.
Buffalo Brick & Mortar 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 Buffalo, NY is to sell directly to the cash investors at Buffalo Brick & Mortar LLC. Our policy at Buffalo Brick & Mortar 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 Buffalo Brick & Mortar 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 Buffalo Brick & Mortar LLC, we do this because we are your neighbors here in Buffalo, NY, 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. Selling your home during bankruptcy in Buffalo is possible, but it requires careful planning and approval from the bankruptcy court. Working with a bankruptcy attorney, understanding your filing type, and following the necessary legal steps will ensure the process goes smoothly. If you’re struggling with debt and need to sell your home, make sure to explore all options available to you, including working with a real estate agent or direct property buyer. By doing so, you can work toward resolving your financial challenges and making a fresh start.
The seasoned pros at Buffalo Brick & Mortar 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 Buffalo, NY real estate market, a direct sale to the cash investors at Buffalo Brick & Mortar LLC is the solution. The cash investors at Buffalo Brick & Mortar 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 Buffalo Brick & Mortar LLC. For a no-hassle sale of your home during bankruptcy: a cash investor from Buffalo Brick & Mortar LLC will buy your house directly, as-is, for cash. Call Buffalo Brick & Mortar LLC at 716-403-2016.