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.
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 Augusta. Please note that this article is for informational purposes, not financial or legal advice. Below are 6 steps you can take to navigate yourself through this challenging time.
1. Court Permission
You’ll need to file a motion with the court for leave to sell the property or approval to sell your house during bankruptcy in Augusta. You will want to include the selling price, your plans for the proceeds, and the 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.
2. Contingency
In a traditional sale, you’ll need to add a contingency clause to the contract to sell your house during bankruptcy in Augusta, stating that the sale is contingent upon obtaining bankruptcy court permission. However, under Chapter 7, the trustee may sell the house if your home has highly 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.
3. Proceeds
You may wonder what happens to any proceeds after the mortgage is satisfied when you sell your house during bankruptcy in Augusta. 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.
4. Planned Payments
Under Chapter 13, if you sell your house during bankruptcy in Augusta, you must modify your planned payments. Depending on the realized sale value, you may pay off your plan earlier as the proceeds go directly toward bankruptcy.
5. Itemized Payoff Statement
To ensure no fees remain to surprise you after you sell your house during bankruptcy in Augusta, you should request an itemized payoff statement.
6. HAS Holdings 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 fast during bankruptcy in Augusta is to sell directly to local cash buyers at HAS Holdings LLC. Our policy is full transparency through every process step because we want you to decide which sales method works best for your situation. To that end, we will buy your house fast with cash and detail your expenditures and potential profits from a conventional listing with an agent vs. our offer, which you’ll agree is fair. We do this because we’re local and care about our community and its people. We want you to feel good about working with us long after closing the deal.
We’re Cash Buyers and have experience with sellers going through bankruptcy. We offer solutions, providing a guaranteed closing date and 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 Augusta market, a direct sale to the cash buyers at HAS Holdings LLC is the solution. We’re Cash Buyers who never charge commissions, and there are no hidden fees. You won’t need to worry about showings when you directly sell to a cash buyer. For a no-hassle sale of your home during bankruptcy, a cash buyer will buy your house directly, as-is, for cash. Call HAS Holdings LLC today at 706-873-1213.