Stop Bankruptcy in San Antonio
If you find yourself in a situation where you own a home at the time of filing for bankruptcy, it automatically becomes part of the bankruptcy estate, which includes all your property and assets. In October of 2022, there was a notable twenty-seven percent increase in chapter 13 bankruptcy filings compared to the previous year. Overall, bankruptcies across all chapters saw a seven percent increase, closely tied to the seven percent rise in inflation. Many homeowners facing overwhelming debt find themselves in this position due to unforeseen circumstances beyond their control, leading them to consider bankruptcy as a solution, which can potentially halt a foreclosure on their primary residence.
Individuals with combined secured and unsecured debts under $2,750,00 qualify for chapter 13 bankruptcy. On the other hand, chapter 7 involves a liquidation process where the trustee may sell off your assets to settle your debts based on your overall income, debt amount, and repayment capability. Homeowners facing financial challenges often contemplate selling their homes to alleviate some of their financial burdens but may question the feasibility of doing so amidst ongoing 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 Texas. Please note that this article is for informational purposes, not financial or legal advice.
Court Permission
If you’re considering selling real estate during bankruptcy in Texas, you must file a motion with the court for permission. This motion should outline details such as the selling price, your intended use of the proceeds, and the identities of creditors with property liens. By submitting this motion, you provide an opportunity for creditors and the trustee to raise objections, with the final decision on fund distribution resting with the court.
Contingency
When selling your house during bankruptcy in Texas, a contingency clause must be added to the contract in a traditional sale. This clause states that the sale is contingent upon obtaining permission from the bankruptcy court. In a chapter 7 scenario, the trustee may decide to sell the house if it has significant equity not protected by your bankruptcy exemption. Proceeds from the sale are used to pay off secured debts such as the mortgage, provide you with the exempted amount, and distribute any remaining funds among unsecured creditors.
Proceeds
Curious about what happens to the proceeds after your mortgage is satisfied when selling your house during bankruptcy in Texas? The outcome will largely hinge on your homestead exemption. Typically, the funds will be allocated towards settling any outstanding unsecured debts or covering the costs of the bankruptcy proceedings.
Planned Payments
When you sell your house during Chapter 13 bankruptcy in Texas, it’s important to note that you may need to adjust your scheduled payments. The amount you receive from the sale will impact your repayment plan, potentially allowing you to pay off your bankruptcy sooner as the proceeds are allocated directly to the debt.
Itemized Payoff Statement
To ensure no fees remain to surprise you after you sell your house during bankruptcy in Texas, you should request an itemized payoff statement.
South Texas Home Investors
Seize the opportunity now! In a market fueled by low supply and impending interest rate hikes, it’s prime time to capitalize on your property. When facing bankruptcy in Texas, the optimal approach to selling your house is through a direct transaction with the cash investors at South Texas Home Investors. At South Texas Home Investors, we prioritize transparency every step of the way, empowering you to choose the sales method that aligns best with your circumstances. Our team at South Texas Home Investors will meticulously outline the costs and potential returns associated with a traditional agent listing versus our offer, which we assure you is equitable. We adopt this approach because we are not just investors but also members of the Texas community who genuinely care about our neighbors. Our goal is for you to feel confident in partnering with us long after the transaction is complete.
The experts at South Texas Home Investors specialize in assisting sellers navigating bankruptcy, presenting a tailored solution that guarantees a swift closing, free from commissions or hidden fees. If you prefer to sidestep the time and expenses involved in preparing your property for the competitive Texas real estate market, a direct sale to the cash investors at South Texas Home Investors is the way forward. With South Texas Home Investors, there are no commission charges or undisclosed costs, providing you with peace of mind. Bid farewell to the hassle of showings by opting for a direct sale to a cash investor from South Texas Home Investors. To effortlessly sell your home during bankruptcy, our cash investor will purchase your property directly, in its current condition, offering cash in return. Contact South Texas Home Investors at 210-729-9030 for a stress-free process.