With housing prices on the rise, many Californian homeowners may be considering selling their properties and searching desperately for potential buyers. But if you’re facing chapter 7 bankruptcy or you are currently in bankruptcy, you might be thinking, can I sell my house while in chapter 7? To help answer this question, we’ll take a look below at some of the factors that affect whether or not such a sale is possible. Read on to find out if selling your home while in California bankruptcy is an option available to you!
However, if you’re feeling the pressure and need immediate action, don’t hesitate to reach out to Osborne Homes, California’s premier cash home buyer. We specialize in quick, fair, and transparent transactions, offering immediate relief to homeowners even in complicated circumstances like bankruptcy. Don’t wait; your solution could be just a call or click away!
What is bankruptcy and how does it work?
Bankruptcy is one of life’s unfortunate realities. It’s a legal status given to individuals and businesses when they can no longer repay their debts. From a practical standpoint, bankruptcy is a formal process that goes through the courts and assigns a trustee— typically an accountant or lawyer— to manage the debtor’s financial affairs. Every case is different, but it generally involves liquidating assets, renegotiating repayment terms, or entirely discharging the debt. While it may signify financial ruin for those involved (no one wants to file for bankruptcy!), it helps protect our economy by providing individuals and organizations with an orderly way to detangle themselves from precarious financial situations. In other words – bankruptcy means nobody has to be stuck in financial purgatory forever; you can emerge on the other side debt-free and ready for a fresh start.
Going bankrupt can be a stressful time, but what does it mean when you go into chapter 7 vs 13 bankruptcy – or chapters 9, 11, 12 or 15, for that matter!?
Chapters of the Bankruptcy Code
Trying to understand the difference between bankruptcy chapters can make your head hurt more than a trip to the DMV. Regardless, before filing, it’s important to understand what each of them means. Here is a breakdown of these chapters, next.
Chapter 7 vs Chapter 13 Bankruptcy
Randomly, there’s such a thing as chapter 7, 9, 11, 12, 13 and 15 bankruptcy. Chapter 7 and 13 are the most common, so that narrows it down quite a bit as you will likely fall under one of those two. In fact, chapter 7 is what most people end up with between these two. Chapter 7 essentially means liquidation, allowing the individual to repay debts under court supervision. And chapter 13 focuses on repaying creditors through a carefully calculated payment plan.
All the other Chapters
Chapter 9 is specifically reserved for municipalities like cities or towns that want financial assistance. Chapter 11 refers to company reorganization when dealing with business-related bankruptcy cases. Chapter 12 exists solely for agricultural operations while Chapter 15 offers protection in cases involving international affairs, in which both the United States and another country are involved.
Sound Like a Nightmare? It Is! Let Osborne Help.
Navigating bankruptcy complexities and selling your home can be challenging. Remember, you’re not alone. At Osborne Homes, we specialize in helping homeowners in such situations. We’re ready to provide the support and guidance you need, no matter the chapter of your bankruptcy. Contact us today for a swift, seamless home-selling experience even amidst bankruptcy.
Can You Sell Your House if You File Bankruptcy?
Back to your original question, can you sell your house after filing chapter 7? The short answer to this is yes. You can.In fact, when you find you are in bankruptcy, you may be forced to sell your house. Even though bankruptcy often elicits a sense of foreboding and finality, selling your home during bankruptcy is actually a viable option.
By understanding the rules set by Chapter 7 or 13 bankruptcy filings and working under the advisement of a legal professional, homeowners looking to sell their house while filing for bankruptcy will not only be able to complete the sale, but they’ll also be able to maintain ownership of any money earned from the transaction (if all requirements are met). Though no one wants to have to go through a bankruptcy proceeding, at least those who need to do so have this tool at their disposal.
Find Out How Osborne Homes Can Help!
We happen to know firsthand that you can absolutely sell your house during or after bankruptcy because we help homeowners in this situation all the time. We buy houses all over California in all kinds of situations, bankruptcy being one. Contact us today to find out if your home qualifies. Most do!
How does bankruptcy affect the sale of a home?
There are two different paths that one could take when going about selling their home, whether in bankruptcy or not. One is on the traditional market, where you either sell on your own or with a brokerage representing you, and the other less traditional route where you make a quick sale for all cash to us here Osborne Homes. Let’s take a glance at each.
Sell on the Traditional Market
Selling a home the traditional way is a complex process as it is. Throw in selling a home after bankruptcy and things only become more complicated. Though some buyers may be eager to purchase a home whose owner has declared bankruptcy, the sale can still be challenging. Negotiations are often more difficult with lenders involved in the sale and different laws must be taken into consideration that permits certain exemptions from creditors. It’s not completely impossible to sell a home when bankruptcy has been declared though it might take longer than expected. Ultimately, if debtors are made aware of the unusual circumstances that arise from selling a home under these conditions it can still be completed in many instances and for an agreed-upon price with all parties’ consent.
Not only is the transaction more complicated but you also have the headache of every other thing you have to do to sell in the competitive real estate market. You will likely have some or many repairs to make. You’ll also want to really clean up the place and even pay a staging company to come in and work their magic so that your listing pictures come out sensational. Speaking of pictures, you’ll likely need to hire a professional photographer to come in and get some clean shots for the listing and any marketing materials. Then you will need to keep your house obsessively clean for the pop-up showings that you will have from various buyers. Once you finally get an offer from a buyer, you’ll need to negotiate. There are a million different scenarios that can take place – no sale is a like. But one thing that is true, selling on the traditional market takes a lot of time and money and when you are already in financial distress with a bankruptcy, it may not even be possible to go this trout. So what is the other option? Selling your home to us here at Osborne Homes.
Sell Fast, for ALL CASH, to Osborne Homes
If declaring bankruptcy has forced you to sell your house, this may sound too good to be true: when you sell your home to us here at Osborne Homes, we can get it done – and FAST. No need to wait around for a ready and willing buyer – here we are! You don’t even need to make any repairs to anything on your property or make any upgrades to impress us. We buy California homes as-is, we pay all cash for them, and we close really fast.
Get started right away!
Selling a home after bankruptcy might sound scary, but not when you have an option like Osborne Homes. Fill out this form with information on your property and we will be in touch to discuss it with you.
