The process of evaluating your assets and managing your financial situation before declaring bankruptcy in SC can be overwhelming. There can be a lot of challenges associated with bankruptcy, but most of them can be overcome with the right approach.
If you are a homeowner facing bankruptcy, you may be wondering whether you need to sell your property to pay off your debt. Selling your house can be a great way of taking control of your finances in certain situations. However, selling a house while in bankruptcy comes with many restrictions.
Chapter 7 Vs. Chapter 13: Which Bankruptcy Should I File?
Individuals often file for bankruptcy under Chapter 7 and Chapter 13 of the Bankruptcy Code.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy discharges certain debts after three to four months, including credit card balances, medical bills, and personal loans. As part of the bankruptcy process, a bankruptcy trustee sells your nonexempt property for the benefit of your creditors. In most cases, you’ll be able to protect your household belongings.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is designed for people with regular income and enough money left over to repay some or all of their debts each month. Your repayment amount will be determined by your income, the amount and type of debt you owe, and the amount of property you own. The trustee does not sell your property in Chapter 13 bankruptcy. However, you must pay creditors an amount equal to the value of the nonexempt property.
Selling Your House During Bankruptcy
You may be able to sell your SC house fast even if you are facing bankruptcy. The process depends largely on when you decide to sell your home and what kind of bankruptcy you file. The following are three general bankruptcy situations and the conditions for selling a house in each:
Before Bankruptcy
Before filing for bankruptcy, you should be cautious not to appear to be fraudulent by selling your house. When you sell your property to avoid paying back debt, you could be punished. The only exception to selling non-exempt property just before filing for bankruptcy is to generate money for necessities.
After Filing Chapter 7 Bankruptcy
As soon as you file for Chapter 7 bankruptcy, a trustee becomes the legal owner of all of your assets. A trustee or bankruptcy court must give you permission before you can do anything with your property. Even if the trustee finds your house to be an exemption, they retain the right to your property until the case is resolved.
While in a Chapter 7 bankruptcy, you must first obtain approval from the court by filing a Motion to Sell Real Property. You will need to include pertinent information such as the selling price, the mortgage lender, as well as a detailed explanation of how the proceeds will be used.
After Filing Chapter 13 Bankruptcy
In this type of bankruptcy, you retain ownership of your assets. During a Chapter 13 bankruptcy, you can sell your home, but there is a considerable amount of paperwork, and your bankruptcy trustee must approve the sale. In order to file a motion to sell your house during Chapter 13 bankruptcy, you should notify your attorney as early as possible.
If you are facing bankruptcy and you are trying to sell your home, it is crucial that the process is simple and straightforward so you can take the next step toward decreasing your debt. You can choose to sell your home through a real estate or by yourself, but if you find commissions too expensive or you find home-selling challenging, there are other options for you. In this case, you can sell your house fast by selling it to a cash homebuyer.
The Easy Way To Sell Your SC Home
If you need to sell your house fast in South Carolina, or need to sell your house for cash, Sell My House Fast – GSAP’s homebuying process can help. We work with all types of homeowners who need to sell their home fast in SC. We can even give you cash for your house right away, so you can move on with no worries.
Our goal is to make your house-selling transaction as smooth and efficient as possible. No matter your background, we can help. We buy almost any house, making a fair cash offer that works for you.
If you’re not sure whether we can meet your needs, just ask! Call us today at (864) 426-9197 to learn more about our homebuying process.
