Have you found yourself in a financial bind and are considering filing for bankruptcy? If so, one of your biggest concerns may be whether or not you can keep your home. Filing for bankruptcy can be a difficult decision, but it doesn’t have to mean losing your home.
Let’s take a closer look below at the role of your home in bankruptcy, factors that affect keeping your home, and alternatives to selling your home to avoid bankruptcy. We’ll also discuss selling your home to avoid bankruptcy and the pros and cons of a cash home sale.
Understanding Bankruptcy and How It Affects Your Assets
When you file for bankruptcy, your assets are evaluated to determine what can be sold to pay off your debts. This includes your home, car, and other valuable possessions. There are two types of bankruptcy that individuals can file for:
- Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, your assets are sold to pay off your debts.
- In Chapter 13 bankruptcy, you are allowed to keep your assets and pay off your debts over a period of three to five years.
The Role of Your House in Bankruptcy
Your home is considered an asset in bankruptcy, which means it can be sold to pay off your debts. However, whether or not you can keep your home after filing for bankruptcy depends on a few different factors. These factors include
- Type of bankruptcy you file
- Equity you have in your home
- Whether or not you are up to date on your mortgage payments.
Can I Keep My House After Filing Bankruptcy?
If you file for Chapter 7 bankruptcy and have equity in your home, it is likely that your home will be sold to pay off your debts.
However, if you file for Chapter 13 bankruptcy, you may be able to keep your home and pay off your debts over a period of three to five years. To keep your home in Chapter 13 bankruptcy, you will need to be up to date on your mortgage payments and have enough income to make your monthly payments.
There are several factors that can affect whether or not you can keep your home after filing for bankruptcy. These factors include the type of bankruptcy you file, the equity you have in your home, and whether or not you are up to date on your mortgage payments.
If you file for Chapter 7 bankruptcy and have equity in your home, it is likely that your home will be sold to pay off your debts. However, if you file for Chapter 13 bankruptcy, you may be able to keep your home and pay off your debts over a period of three to five years.
Selling Your Home To Avoid Bankruptcy: Pros and Cons
If you are considering selling your home to avoid bankruptcy, there are several pros and cons to consider. One advantage of selling your home is that it can provide you with a lump sum of cash that can be used to pay off your debts.
However, selling your home can also be stressful and time-consuming. You will need to find a real estate agent, list your home, and prepare your home for showings.
Cash Home Sale as an Option for Bankruptcy
If you need to sell your home quickly to avoid bankruptcy, a cash home sale may be a good option for you. A cash home sale involves selling your home to a real estate investor for cash. This can be a good option if you need to sell your home quickly and don’t want to deal with the hassle of listing your home with a real estate agent.
When selling your home for cash to avoid bankruptcy, it is important to find the right cash home buyer. Look for a buyer who is experienced, knowledgeable, and has a good reputation in the industry. Make sure to read reviews and testimonials from other clients to get a sense of their experience working with the buyer.
Contact Our Louisville Cash Home Buyers
If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact We Buy Real Estate. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 502-458-2722 to get a guaranteed cash offer on your home from our local home buyers in Kentucky.