Bankruptcy is difficult to navigate, especially if you want to sell your house fast in Memphis, Tennessee. Where do you begin? Can you sell your house during a bankruptcy? Learn a little about the process from Pyramid Properties below.
Get Court Permission While Notifying Creditors
Your experience with the house sale and bankruptcy process may vary, depending on whether you filed for Chapter 7 or Chapter 13. However, almost every property transaction begins the same way.
You must first seek approval from the court to sell a home during bankruptcy. Then, you’ll want to discuss your plans with your creditors. They will likely assign a trustee to your case to manage the transaction and potential profits.
Make a Note of All Sale Details for Legal Disclosure
Work with an attorney who can help you navigate the legal requirements for selling a home in bankruptcy situations. They’ll know which details to disclose in a document called the Motion to Sell, which outlines the following information for the court and your creditors:
- The property’s market price
- How you will distribute your sale profits to your creditors
- An appraisal that demonstrates the house’s value
Afterward, you’ll attend a court hearing where your creditors may oppose the motion. If you schedule a closing date in advance, make sure to choose a day after this hearing in case the court doesn’t approve of the sale.
Prepare for Sale Proceeds To Cover Your Debts
Can you sell your house during a bankruptcy? You can move forward if the court approves the Motion to Sell. The proceeds from the finalized bankruptcy property sale will likely go toward covering your debts, as is often the case with selling assets during bankruptcy.
However, some exceptions can occur. A Chapter 7 bankruptcy house sale where the seller doesn’t have enough equity might force the trustee to abandon the property. The seller might keep their profits in such cases. In other cases, your equity is exempt, enabling you to maintain ownership of it.
Why Work With a Cash Buyer?
Completing a house sale while bankrupt often involves intensive time and financial constraints. You’re already struggling financially, so you might not have the money for:
- A quality real estate agent
- Staging services for future open houses
- Repair and landscaping services to make the property look presentable
- Multiple home inspections
An as-is house attracts fewer traditional buyers. You’ll have to adapt to these limitations accordingly. A cash home buyer in Memphis, Tennessee, may be the better option for a hassle free sale.
These buyers purchase homes regardless of their condition. If you receive court approval for the sale, trust Pyramid Properties to make the process seamless.
Looking To Sell Your House During a Bankruptcy? Start With Pyramid Properties
Can you sell your house during a bankruptcy? Yes, and once the court approves the transaction, reach out to Alan with Pyramid Properties. Selling a house for cash has never been easier in Memphis, Tennessee. Call Alan at 901-504-5555 to request an offer.