Once you file for bankruptcy, your home and all of your other possessions become a part of the bankruptcy case. While your creditors can’t foreclose on your property because it’s shielded under bankruptcy protection, you can’t sell your house without specific permission from the bankruptcy court. However, the trustee can ask the court for permission to sell your home to satisfy your debts.
If You Want to Sell
If you decide to sell your house, you need to file a Motion to Sell Real Property with the bankruptcy court. All particulars, including the selling price and the names of creditors with liens on the property, must appear in the formal motion. You’ll also need to give the court detailed information about what you want to do with the proceeds of the sale.
Trustee Sale Approval
At certain times, the court-appointed trustee believes that selling a home is best to satisfy creditor demands. Trustees must provide all pertinent information about the property, including the planned distribution of the proceeds. The trustee also must convince the court that such a sale won’t be overly detrimental to the bankruptcy petitioner. In most states, part or all of a home’s value may be protected as “exempt” property, minimizing the possibility of a trustee-requested sale.
Owner-Occupied or Investment House
While your owner-occupied home has certain bankruptcy protection from a court-ordered sale, investment properties enjoy no such advantages. If you’ve filed a Chapter 7 bankruptcy petition, you may be able to protect your primary residence from sale, but you typically can’t keep investment homes from being included in the bankruptcy. Your only real chance to save investment property is to prove undue hardship if an investment property is sold.
Linken Investments Can Pay Cash For Your House or Investment Property Even if You Filed For Bankruptcy.
Linken Investments LLC. is a real estate solutions company based out of Lynchburg, VA. We have been investing in Central Virginia Real Estate since 2005. We’re a family-owned business and focus on helping homeowners like you find solutions for your problem whether you’re going through a Bankruptcy, can’t sell your property, or just need to sell your house fast for any kind of reason.
We buy houses in Lynchburg, Roanoke, Farmville, Appomattox, Salem, Bedford, Amherst, AltaVista, Rustburg, Vinton, Hollins, Moneta. We know the area, which means we can help you sell your house fast no matter where it is or what condition it’s in (and even if there are tenants). We are Home Buyers who pay cash.