If you find yourself in a situation where you need to file for bankruptcy in Louisville while owning a home, it’s essential to understand that your home becomes part of the bankruptcy estate, which includes all your properties and assets.
Recent data from October 2022 shows a significant twenty-seven percent increase in chapter 13 bankruptcy filings compared to the previous year.
Overall, bankruptcies across all chapters have seen a seven percent rise, mirroring the seven percent increase in inflation rates. Many homeowners facing overwhelming debt find themselves in these circumstances due to factors beyond their control, leading them to consider bankruptcy as a solution to halt foreclosure on their primary residence.
If you are in such a situation in Louisville, KY, reach out to Simply Sold at 502-309-2220 for expert guidance and support.
Those with secured and unsecured debts totaling less than $2,750,00 are eligible for chapter 13. However, chapter 7 is a liquidation process in which the trustee sells your assets to pay debts based on your total income, debt, and ability to repay. Often, these homeowners want to sell their houses to solve at least some of their financial difficulties but wonder if it is possible during 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 Louisville. Please note that this article is for informational purposes, not financial or legal advice.
Court Permission
You’ll need to file a motion with the court for leave to sell real property or approval to sell your house during bankruptcy in Louisville. You will want to include the selling price, your plans for the proceeds, and names of creditors holding liens on the property. This motion allows your creditors and any trustee to object, with the court determining the disbursement of any funds.
Contingency
In a traditional sale, you’ll need to add a contingency clause to the contract to sell your house during bankruptcy in Louisville, stating that the sale is contingent upon obtaining bankruptcy court permission.
However, under chapter 7, the trustee may determine to sell the house if your home has high unprotected equity under your bankruptcy exemption. With the funds, the trustee pays any secured debts like the mortgage, provides you with the exempted amount you are entitled to and then satisfies any unsecured creditors with a pro ratio share of any remaining funds.
Bankruptcy In Louisville Proceeds
You may wonder what happens to any proceeds after the mortgage is satisfied when you sell your house during bankruptcy in Louisville. Of course, much will depend on your homestead exemption. However, the proceeds will likely go towards paying any remaining unsecured creditors or paying for the bankruptcy case.
Planned Payments
Under chapter 13, if you sell your house during bankruptcy in Louisville, you will need to modify your planned payments. Depending on the realized sale value, you may pay your plan off earlier as the proceeds go directly towards the bankruptcy.
Itemized Payoff Statement
To ensure no fees remain to surprise you after you sell your house during bankruptcy in Louisville, you should request an itemized payoff statement.
Simply Sold
Don’t hesitate! With competition still driven by low supply and rising interest rates on the horizon, now is the time to cash in on your house, and the best way to sell your house during bankruptcy in Louisville is to sell directly to the cash investors at Simply Sold.
Our policy at Simply Sold is full transparency through every step of the process because we want you to decide which sales method works best for your situation.
To that end, a cash investor from Simply Sold will detail your expenditures and potential profits from a conventional listing with an agent, vs. our offer, which you’ll agree is fair.
At Simply Sold, we do this because we are your neighbors here in Louisville, we care about our community and the people in it, and we want you to feel good about working with us long after the deal is closed.
The seasoned pros at Simply Sold have experience with sellers going through bankruptcy and have the solution you seek, providing you with a guaranteed closing date, charging no commissions or closing costs with no unpleasant surprises.
If you’d like to avoid the work and out-of-pocket costs of prepping your house to list on the Louisville real estate market, a direct sale to the cash investors at Simply Sold is the solution. The cash investors at Simply Sold never charge commissions, and there are no hidden fees. So you can put your wallet away and relax; you won’t even need to worry about showings when you make a direct sale to a cash investor from Simply Sold. For a no-hassle sale of your home during bankruptcy: a cash investor from Simply Sold will buy your house directly, as-is, for cash. Call Simply Sold at 502-309-2220.