Filing for bankruptcy can be a challenging time for anyone, and if you’re a homeowner, you may be wondering if you can sell your house during this process.
The answer to this question depends on the type of bankruptcy you’re filing and the specifics of your situation. In this blog, we’ll discuss the possibilities of selling your house during bankruptcy to cash home buyers in Cincinnati, Ohio, and explore the option of a cash home sale.
Understanding Bankruptcy in Ohio
There are two primary types of personal bankruptcy: Chapter 7 and Chapter 13. Understanding the differences between these types of bankruptcy is crucial when considering selling your house during this process.
- Chapter 7 Bankruptcy: Also known as “liquidation” bankruptcy, Chapter 7 involves the selling of non-exempt assets to pay off unsecured debts, such as credit card debt and medical bills. In some cases, this may include selling your house.
- Chapter 13 Bankruptcy: Chapter 13, or “reorganization” bankruptcy, allows you to create a repayment plan to pay off your debts over a period of 3-5 years. In most cases, you can keep your house as long as you continue to make your mortgage payments and fulfill the terms of your repayment plan.
Selling Your House During Chapter 7 Bankruptcy
If you’ve filed for Chapter 7 bankruptcy, selling your house can be more complicated. In this type of bankruptcy, a trustee is appointed to oversee your case and manage the sale of your non-exempt assets.
The trustee has the authority to decide whether your house should be sold to pay off your debts.
- If the trustee decides to sell your house, you won’t have much control over the process. The trustee will manage the sale, and the proceeds will be used to pay off your creditors.
- If the trustee determines that your house is exempt and doesn’t need to be sold, you may be able to sell your house on your own. However, you’ll need to obtain permission from the bankruptcy court before proceeding with the sale.
Selling Your House During Chapter 13 Bankruptcy
Selling your house during Chapter 13 bankruptcy is generally more straightforward than in Chapter 7. Since you’re allowed to keep your house in Chapter 13, you can sell it as long as you continue to make your mortgage payments and follow your repayment plan.
- Before selling your house, you’ll need to obtain permission from the bankruptcy court. You’ll need to provide details about the proposed sale, including the sales price and any costs associated with the transaction.
- Any proceeds from the sale must be used to pay off your debts according to your repayment plan.
Should I Choose a Cash Home Sale to Avoid Bankruptcy?
Filing for bankruptcy can be a difficult and stressful time, particularly when it comes to managing your financial assets, including your home. If you are considering selling your house during bankruptcy, a cash home sale may be an option worth exploring.
A cash home sale is a type of real estate transaction where the buyer purchases a property without relying on financing from a mortgage lender or bank. Instead, the buyer pays the entire purchase price using their own available funds. This type of transaction is generally faster, more straightforward, and has fewer contingencies compared to a traditional home sale involving financing.
The Benefits of a Cash Home Sale During Bankruptcy
Selling your house for cash during bankruptcy offers several advantages
Sell Your House Faster
Cash sales typically close faster than traditional sales, which can be beneficial during bankruptcy when time may be of the essence.
Simplify the Selling Process
Cash sales involve fewer contingencies and a more streamlined process compared to traditional home sales, making it easier to navigate during bankruptcy.
Make No Home Repairs
Cash buyers often purchase houses as-is, meaning you won’t need to spend time or money on repairs or improvements before selling.
Sell My House Fast in Cincinnati, Ohio
If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact Record Year Realty. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 937-269-4679 to get cash for your home from our local home buyers in Ohio.
