Filing for bankruptcy is sometimes the best decision to make if you have trouble paying down extensive debt. Yet, you might wonder, “Can you sell a house while in Chapter 13?”
The Red Door Guys is an experienced cash home buyer serving residents in Richmond, Virginia and surrounding areas. We work closely with homeowners experiencing unique and complex situations, including bankruptcy. If you’re going through Chapter 13, consult our guide for more details about selling your house under such conditions.
What Happens to Houses When Homeowners Initiate Chapter 13 Bankruptcy?
Chapter 13 bankruptcy terms often include repayment plans with three- to five-year timeframes. During that time, the bankruptcy stays open, and the person who filed must make monthly payments toward it.
Regarding the debtor’s primary residence, it will become part of the bankruptcy estate. Asset liquidation may help with the mortgage payoff and other debt.
In many cases, homeowners file Chapter 13 bankruptcy to prevent foreclosure and remain in their homes while they catch up on missed mortgage payments. Can you sell a house while in Chapter 13? You can sell the property, but there are extra steps to take to ensure a seamless transfer of ownership.
What To Expect When Selling Your House During Chapter 13 Bankruptcy
The short answer to “Can you sell a house while in Chapter 13?” is yes because this type of bankruptcy doesn’t prevent people from selling assets. However, it does require debtors to get bankruptcy court approval before they officially transfer ownership of the property.
Before reaching out to a real estate agent, speak to your bankruptcy attorney to ensure the equity in your property is part of your bankruptcy’s exemption. The courts must approve your chosen real estate agent to get their commission from the sale. A trustee will have general control over your assets, including your home, so you’ll also need trustee consent for the sale.
So, how does the process work? You’ll have to file a motion with the courts to sell your house. The motion must include detailed information about the impending sale, including its most recent appraised value and intended sale price.
The motion to sell your property must also include details about how you will distribute the profits from the sale. If the trustee and bankruptcy judge approve of the sale, you can proceed with it. You may need to revise your bankruptcy plan after the sale.
Sell Your House Fast With The Red Door Guys
Going through bankruptcy doesn’t mean you can no longer be a homeowner. Can you sell a house while in Chapter 13? You certainly can, as long as you get bankruptcy court approval.
You can also sell your house in Richmond Virginia or surrounding areas for cash with The Red Door Guys. Our company has more than 20 years of experience in the local real estate industry. No homeowner circumstance or home situation is too complicated for us to handle.
Contact The Red Door Guys at (804) 395-7355 today and get a fair cash offer on your home.
