How to Sell Your House During Bankruptcy in Florida
If you own a home when you file for bankruptcy, it becomes part of the bankruptcy estate, the property or assets you own. In October of 2022, there was a twenty-seven percent increase in chapter 13 bankruptcy filings over the previous year. Bankruptcies, including all chapters, total a seven percent increase overall, which correlates strongly with the seven percent increase in inflation. Many homeowners are overwhelmed by their debt. As financial issues due to circumstances beyond their control changed their ability to pay creditors, they find they have no option but to claim bankruptcy, which can stop a foreclosure on their primary residence.
Those with secured and unsecured debts totaling less than $2,750,00 are eligible for chapter 13. However, chapter 7 is a liquidation process in which the trustee sells your assets to pay debts based on your total income, debt, and ability to repay. Often, these homeowners want to sell their houses to solve at least some of their financial difficulties but wonder if it is possible during bankruptcy proceedings.
While the rules for the process may differ for the type of bankruptcy you file under, and many factors influence the final determination, for most homeowners, the short answer is yes. So read on as we explore how to sell your house during bankruptcy in Florida . Please note that this article is for informational purposes, not 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 Florida . 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 home during bankruptcy in Florida through traditional channels, you must include a contingency clause in your contract specifying that the sale requires court approval. It’s important to understand that in chapter 7 proceedings, if your property contains significant equity beyond your exemption limits, the trustee may opt to sell your home themselves. In such cases, the trustee uses the proceeds to first satisfy secured debts like your mortgage, then provides you with your legally protected exemption amount, before distributing any remaining funds proportionally among unsecured creditors. At Viera Investment Group LLC, we understand these complex situations and can offer creative solutions tailored to your specific bankruptcy circumstances.
Proceeds
Wondering about the fate of your home sale proceeds after mortgage payoff when selling your house during bankruptcy in Florida ? While your homestead exemption plays a significant role, those remaining funds typically get directed toward satisfying unsecured creditors or covering bankruptcy case expenses. At Viera Investment Group LLC, we understand these complex financial situations and can help guide you through this challenging process with transparency and integrity.
Planned Payments
Under chapter 13, if you sell your house during bankruptcy in Florida , you’ll need to modify your repayment plan. The proceeds from your sale will typically go directly toward your bankruptcy obligations, potentially allowing you to complete your plan earlier. At Viera Investment Group LLC, we understand these complex situations and can provide guidance with our 30+ years of combined real estate and financial expertise.
Itemized Payoff Statement
When selling your house during bankruptcy in Florida , request an itemized payoff statement to eliminate any unexpected fees. At Viera Investment Group LLC, we believe in complete transparency throughout your home sale, ensuring you understand every financial detail.
Viera Investment Group LLC
Time is of the essence! With market competition driven by low inventory and interest rate increases looming, now is the perfect moment to maximize your home’s value, and the most effective way to sell your house during bankruptcy in Florida is through a direct sale to the experienced investors at Viera Investment Group LLC. At Viera Investment Group LLC, we believe in complete transparency throughout the entire process because we want you to make the decision that truly works best for your unique situation. That’s why our investment specialists at Viera Investment Group LLC will carefully outline all expenses and potential profits from both traditional agent listings and our fair cash offer. We take this approach because we’re your neighbors right here in Florida – we genuinely care about our community and the people who make it special, and we want to ensure you feel confident in your decision long after closing.
With over 30 years of combined experience in real estate and finance, the team at Viera Investment Group LLC specializes in helping homeowners navigate bankruptcy while selling their homes. We provide the creative solutions you need, including a guaranteed closing date, zero commissions, and no closing costs – with absolutely no surprises. If you’d prefer to avoid the hassle and expense of preparing your home for the competitive Florida real estate market, a direct sale to Viera Investment Group LLC is your answer. Our investment professionals never charge commissions, and we have no hidden fees whatsoever. You can put your wallet away and breathe easy; you won’t even need to worry about disruptive showings when you make a direct sale to Viera Investment Group LLC. For a dignified, hassle-free solution during bankruptcy: we’ll buy your house directly, in any condition, for cash. Call Viera Investment Group LLC at +19738321791.
Bankruptcy Basics — U.S. Courts
About Bankruptcy — U.S. Courts
Bankruptcy Information Sheet — U.S. Trustee Program (DOJ)