If you are a homeowner filing for bankruptcy, your home becomes part of the bankruptcy estate, which includes all your assets. In Henderson, there was a notable twenty-seven percent increase in chapter 13 bankruptcy filings in October 2022 compared to the previous year. Overall, bankruptcies across all chapters saw a seven percent increase, mirroring the rise in inflation. Many homeowners facing overwhelming debts due to unforeseen circumstances find themselves with no choice but to declare bankruptcy, a move that can halt a foreclosure on their primary residence.
Individuals with combined secured and unsecured debts below $2,750,00 qualify for chapter 13 bankruptcy. On the other hand, chapter 7 involves liquidating assets to repay debts based on income, debt amount, and repayment capacity. While many homeowners in such situations consider selling their homes to alleviate financial stress, they often wonder if it’s permissible during bankruptcy proceedings.
The rules and outcomes may vary based on the bankruptcy chapter you file under and other influencing factors. However, in most cases, the answer is affirmative. Read further to discover how to sell your house during bankruptcy in Henderson. Please bear in mind that this content serves informational purposes only and does not constitute 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 Henderson. 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
When selling your house during bankruptcy in Henderson, it’s crucial to consider including a contingency clause in the contract. This clause specifies that the sale is subject to obtaining permission from the bankruptcy court. In the case of a chapter 7 bankruptcy, the trustee might choose to sell the house if it holds substantial equity that exceeds your bankruptcy exemption. Proceeds from the sale are used to pay off secured debts such as the mortgage, allocate the exempted amount to you, and then distribute any remaining funds among unsecured creditors based on a pro rata share.
Proceeds
You may wonder what happens to any proceeds after the mortgage is satisfied when you sell your house during bankruptcy in Henderson. 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 Henderson, 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 Henderson, you should request an itemized payoff statement.
NLS Homes
Seize the opportunity today! With the real estate market in Henderson still impacted by low supply and impending interest rate hikes, the timing is perfect to capitalize on your property. When it comes to selling your house during bankruptcy in Henderson, the optimal approach is to engage with the cash investors at NLS Homes. At NLS Homes, we prioritize transparency at every stage of the transaction to empower you in selecting the most suitable sales strategy for your circumstances. Our dedicated team member will meticulously outline the expenses and potential earnings associated with a traditional listing through an agent versus our direct offer, which we are confident you will find equitable. Operating as your local partners in Henderson, we hold a genuine interest in our community and its members, aiming for your lasting satisfaction long beyond the completion of the transaction.
The skilled professionals at NLS Homes possess adeptness in assisting sellers navigating bankruptcy, offering the resolution you are searching for: a confirmed closing date, zero commissions or closing fees, and a promise of no unwelcome surprises. Opting for a direct sale to the cash investors at NLS Homes enables you to bypass the efforts and expenses of preparing your property for listing in the Henderson real estate market. We, at NLS Homes, never impose commission charges and maintain complete transparency in our process, eliminating any concealed costs. Hence, you can set aside any financial concerns and unwind, without the necessity of managing property showings when opting for a direct transaction with our cash investor. For a stress-free home sale amid bankruptcy, a cash investor from NLS Homes stands ready to acquire your property promptly, in its current condition, for cash. Contact NLS Homes at (702) 601-1673 for further information.