Can I Sell My House Fast to Avoid Bankruptcy?

If you are thinking about filing bankruptcy, you may feel that you are out of options for getting out of debt. While it is true that your financial options may be limited, there is one possible solution that you may want to consider. You can sell your house fast for cash to a local home buyer in the Greater Tampa area. 

When you sell your house as-is, you may get the cash you need to pay off your mortgage and other debts. If you can pay down your debt, you may not have to file bankruptcy. You can start fresh without hurting your credit. You may be able to buy another home, purchase a car, or finally put some money savings. Even if a cash sale only covers your mortgage, you’ve still reduced your debt substantially, making it more manageable.

Can I Sell My House During the Bankruptcy Proceedings?

There are no federal or state laws prohibiting you from selling your house after you have already filed bankruptcy. However, you will need to work with the court, the bankruptcy trustee, and the mortgage company to come up with a plan to sell your house. This is why selling your house for cash is your best option. It eliminates all the hurdles to selling your fast, simplifies the process, and ensures that you pay off your mortgage quickly. 

By working with a local home buyer, you have more leverage to halt the bankruptcy proceedings and pay off creditors without damaging your credit. Local home buyers work with sellers in your situation. Therefore, they have the experience and the financial means necessary to buy your house right now so that you do not have to wait. 

Understanding the Bankruptcy Process in Florida

When selling your house during bankruptcy, most courts follow a step-by-step process.

Obtain Permission from the Court

The bankruptcy court must approve the terms of the sale before a debtor closes on the property. This means that you will need to make sure the contract for the sale of your home includes a provision that states that the sale is subject to the bankruptcy judge’s approval.

Notify Your Creditors

Your bankruptcy attorney must notify your creditors before the property is sold. Your creditors have the right to object to the sale of your house. They also have the right to object to your repayment plan.

Disclose Details of the Sale to Creditors and the Court

You and your bankruptcy attorney must disclose the details of the proposed sale to both the creditors and the bankruptcy court before you can proceed. Those details will take the form of a Motion to Sell and a Statement of Sale. You must file these with the trustee and court.

The Motion to Sell will include:

  • Home’s sale price
  • Appraisal proving the property’s value
  • Details of how the proceeds from the sale will be disbursed to the creditors

The Statement of Sale will provide a detailed account of all deductions made and profits earned from the sale of the home. It will include your home’s final sale price, closing costs, how much your mortgage lender is paid, and the amount of any leftover funds.

Once the Motion to Sell is filed, the court will schedule a hearing to give creditors time to object. So, set a closing date after the bankruptcy court has approved the sale. If the court approves the motion, the sale can proceed.

Proceeds Pay Your Creditors

All proceeds from the sale of your home become part of the bankruptcy estate. These proceeds must be paid directly to the bankruptcy trustee. The trustee will then disburse the proceeds to the creditors.

If the sale of your home allows you to pay off your repayment plan, you could have the bankruptcy discharged shortly after the sale. The trustee will approve the discharge, which the bankruptcy judge will sign. The final decree from the judge proves you are out of bankruptcy.

Avoid Bankruptcy in 3 Easy Steps

Step 1:  Contact Us

Call us today or fill out the form, and we will discuss your property. You can schedule a quick walkthrough. There is no obligation to sell, and you can ask as many questions as you like. Do not worry about making repairs or cleaning the house. We buy houses as-is!

Step 2: Get a Fair Cash Offer

If we like what we see, we’ll make an offer on the house. Our offers come in at just under the current market value of your property. We make most offers within 24 to 48 hours of looking at the house. You don’t have to wait to sell your house regardless of your situation.

Step 3: We Pay You Cash

If you accept our offer, we pay cash for your house. We can close the deal in as little as seven days. You schedule a closing day that is convenient for you. We pay all closing costs and fees. You simply sell the house and walk away with no strings attached. Selling your house has never been easier.

Sell Your House Fast Today with J&A Home Buyers

Selling your house does not have to be complicated or a long, drawn-out process. J&A Home Buyers makes it possible to sell your house fast in The Greater Tampa area as-is for cash. To find out more about the benefits of a cash sale, call us today at 727-888-2134 and get a fast cash offer.

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