Many individuals who go bankrupt have one main objective in mind: how to obtain money to pay off debts and establish themselves for a better future.
Depending on the kind of bankruptcy you file, you will have the option to sell off some of your belongings to help raise money needed to pay back debts required by the court. The biggest asset you probably own is your house so you may have asked this question to yourself: “How can I sell my house fast in Fayetteville, NC?”
However, bankruptcy law in Fayetteville has its own intricacies and you may not be allowed to sell your home right away. Let’s get into bankruptcy law in Fayetteville and what this entails for your home.
Selling your Fayetteville home under Chapter 7 and Chapter 13 bankruptcy
The kind of bankruptcy you file is extremely important in determining if you’ll be able to sell your home fast in Fayetteville. The two main kinds of bankruptcy that most can file are Chapter 7 and Chapter 13, which have two very different approaches to bankruptcy.
Chapter 7
Chapter 7 bankruptcy is often referred to as “straight” bankruptcy. This is usually for those who have little assets and disposable income to be able to pay off their debt. In Chapter 7, bankruptcy law in Fayetteville states that your possessions and assets become part of your bankruptcy estate. You will be assigned a trustee who will evaluate your estate and determine which of your properties and assets can be sold off to help repay some of your debt.
Usually in this kind of bankruptcy, you surrender your home to your trustee as part of the estate or you will retain it. Chapter 7 bankruptcies only last three to six months so you’re better off selling the property after the bankruptcy is settled so you won’t need to gain permission from the court to do so.
Chapter 13
Chapter 13 bankruptcy works more like a restructured payment plan. In this kind of bankruptcy, your debts won’t totally be erased, which is most likely to happen in a Chapter 7 bankruptcy. Instead, Chapter 13 works to provide a new repayment plan for the person who filed bankruptcy, allowing them to repay their creditors over several years.
The main benefit here is that your home is usually protected, meaning you get to keep ownership and are free to sell it as long as you wait 21 days after filing for Chapter 13 bankruptcy. A requirement of selling is that it shouldn’t cause financial harm to the mortgage lender.
Make selling your home in bankruptcy easier
Dealing with bankruptcy is tough work. Trying to sell your home in bankruptcy means extra work in court. You’ll need to file a Motion to Sell, notify all your creditors, prove the value of your home, and propose how you will distribute the proceeds from the sale to repay your creditors. And you’re going to need approval from the court and your trustee every step of the way.
The last thing you want to do is add to the stress by selling your Fayetteville home the traditional way. You’ll have to take care of hiring a real estate agent, preparing & repairing your home, listing it, then marketing it, and dealing with the closing processes. Why not consider selling your property to a professional homebuyer like Allora Homes?
At Allora Home, we buy houses in Fayetteville, NC in any condition, no matter what legal issues you may be facing. We offer cash for your home and can provide that offer quickly in just a few easy steps. You won’t have to worry about conducting repairs or inspections, hiring an agent, or even paying commission and other fees.
We make selling your home in bankruptcy in Fayetteville really easy for you so you can focus on the things that matter most. Get quick feedback on exactly how much you can sell your home for and choose exactly when you want to close the deal. Let us help you through your bankruptcy! Fill out the form on our website and let’s get started.