When your debts have begun to pile up, filing for bankruptcy may be the only practical solution. We’ve discussed selling your property after filing for bankruptcy in South Carolina, and we’ve talked about our two options: a Chapter 7 bankruptcy (where your eligible assets are sold to repay all your debts), and a Chapter 13 bankruptcy (where you have three to five years to pay off your debts while keeping your assets).
Whichever option you choose, you still have the option to sell your house in South Carolina. However, how you go about it can vary depending on the option. Here’s what you should know about selling your property while in either type of bankruptcy.
Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, your non-exempted properties will be sold to repay your debts. In some cases, this may include your residential property. South Carolina’s Homestead Laws state that a debtor cannot exempt more than $58,225 in real property, but given that the median price of a home in South Carolina can reach $171,200, it can be difficult to file an exemption on your house.
This means that if you have a secured loan where your house was used as collateral, the house will be sold and the income will be used to clear your remaining loan. You can try to negotiate an agreement with the lender, but ultimately selling the property will clear you of your debt.
Can I Sell My House?
Technically, your house will be sold for you, and the proceeds from that auction or sale will go either to those who have lent you money, or to a lender who has your property on a secured loan as collateral. You don’t really have a choice in the matter as your property will have to be sold in order to clear your debts.
Chapter 13 Bankruptcy
On the other hand, a Chapter 13 bankruptcy is when you pay your debts over time. This is available to those who can prove that they have steady income and can pay back their debts over time. Rather than having your assets sold, you have between three to five years to pay off a portion of your debt. Once you’ve paid off your debts, they will be cleared.
This is the much more ideal solution for people who want to keep their homes and other assets that would not have been exempted in a Chapter 7 bankruptcy. This also gives you up to five more years to manage your finances and pull yourself out of debt.
Can I Sell My House?
Because your properties will not be sold off, you can sell your home on your own terms. In fact, it might be in your best interests to liquidate properties to pay off your debts.
Let’s say that you’ve applied for a Chapter 13 and have five years to pay off your loans. While your house is protected from being foreclosed and auctioned off, you may find it difficult to pay off your loan through your steady income while still making ends meet with your other cost-of-living expenses. In this case, it may be the best option to sell your house.
Sell To A Professional Home Buyer!
If you’re considering selling your house in South Carolina, there are a lot of factors to consider. Many people looking to sell their homes to get out of debt may not have the luxury of time, real estate agent commission fees, repairs and renovations, open houses, and all the other hidden fees and processes of putting a house on the market for investors and families shopping for a new home.
At Sell My House Fast – Greensville, Spartan Burg, Anderson, Pickens, we understand your predicament and are ready to help. We are professional home buyers and are happy to provide you with a fair cash offer with minimal fuss and hassle on your end. We shoulder the closing costs and all the other steps that go into selling a house.
We understand the challenges homeowners face when they file for bankruptcy, and we’re here to help. Call (864) 428-9197 today to sell your house fast and be one step closer to a better financial future.