Filing for bankruptcy often results in a stressful and demoralizing experience. However, it can relieve debtors of unmanageable financial weight. If you filed for Chapter 7 bankruptcy, you might wonder how to regain some of your losses.
“How soon after Chapter 7 can I sell my house?” you might wonder. “Can I sell my house fast in Wichita, Kansas?” Professional Home Buyers answers these questions below.
Understanding How Chapter 7 Bankruptcy Affects Transactions
Chapter 7 bankruptcy occurs when a person or entity collects excessive debt. They can no longer afford to repay their loans or make payments on purchased assets. Therefore, they file for bankruptcy to liquidate and entrust the total costs to a bankruptcy trustee.
The trustee uses these assets to pay off the debts and commission requirements. You might achieve a bankruptcy discharge once all debts are repaid and you complete court requirements, such as financial courses.
How Soon After Chapter 7 Can I Sell My House?
Whether and when you can sell your home depends on your property’s exemption status. The trustee will use your property to cover debts if the court rules it nonexempt. However, you can sell an exempt property once the bankruptcy court closes your Chapter 7, assuming you possess an exempt property.
What To Consider Before Selling Your Home
Selling your house in 2024 comes with challenges under typical circumstances. Trying to sell after filing for bankruptcy has numerous legal obstacles. “How soon after Chapter 7 can I sell my house?” you ask. The answer depends on the factors discussed below.
Exempt Properties
Homestead exemptions protect some properties from debt collection and liquidation. Determine whether an exemption applies to your property. If your property is exempt from liquidation, it will stay in your name and ownership. Therefore, you can sell it upon bankruptcy closure.
Closure vs. Discharge
Did the court discharge or close your bankruptcy case? A bankruptcy discharge permanently relieves you of debt liabilities but does not conclude the case. Closure signifies the end of the case.
If you sell your property prematurely, you risk the trustee seizing your profits to pay off loans. Wait out the bankruptcy waiting period before selling.
Prioritizing Cash Value
Is your property exempt, and is your bankruptcy case closed? If so, you can explore selling avenues. You likely want to pad your bank account with cash—the sooner, the better.
The bankruptcy’s closure gave you a new lease on life. You only need a decent sum of money to start anew. Cash buyers don’t require a conventional mortgage and can pay for your property upfront. Explore these services as avenues for restarting your life.
Get Your Fresh Start With Help From Professional Home Buyers
“How soon after Chapter 7 can I sell my house?” Determine whether you have an exempt property. Then, wait till your case closes before selling.
Professional Home Buyers helps you quickly sell your home for cash. We also inform clients about pertinent topics, like whether you can sell your house before paying it off. Call 316-202-1628 to learn more about your property selling options.