
If you’ve declared bankruptcy, you’re probably wondering what’s next for your home. Whether you’re interested in selling your house because you cannot afford to live there anymore or are looking for a fresh start after filing Chapter 7 bankruptcy, there’s a lot to learn about the process.
Since you’ve filed for bankruptcy, you’ve given up your financial obligations because you can’t pay back your debts. This means that these entities can take your assets, including investments, and property to put towards your debts.
While filing bankruptcy isn’t ideal, if you’ve filed for Chapter 7 bankruptcy, it’s a great way to get your life back on track. Chapter 7 Bankruptcy can help you with a fresh start by helping to reduce your student loans, medical bills, credit card debt, and more.
Chapter 7 bankruptcy in New York is an option for those who cannot repay some or all of their debts. Chapter 7 helps reduce your debts in other areas of your life while rebuilding your financial situation.
When you declare bankruptcy, the courts and a trustee can take all your assets and do with them what they will, including your home. In New York, there are specific laws about what those who’ve filed for Chapter 7 can and cannot do with their property. They define the restrictions by exempt and non-exempt property.
Have you found yourself asking, “Can you sell a house after filing for Chapter 7 bankruptcy in New York?”
The good news is that yes, you can sell your home in New York after filing for Chapter 7 bankruptcy. If you’re wondering who will buy my house New York residents are looking for, it’s not as simple as putting your home on the market. You need to time the sale of your house correctly to ensure that the profits don’t end up in the hands of your creditors.
Contacting a qualified real estate agent can help you determine the best time to sell a house. Plus, they’re going to be a crucial factor in selling your home after bankruptcy.
While the courts have an open case to assess your bankruptcy, you won’t want to sell your home. If you do, you may never see the profits. You’ll want to wait until the courts officially close your case. Afterward, you’ll be able to sell your home without losing the money.
The main reason for this is because, in New York, your property is either exempt or non-exempt. If your home is exempt, you’ll be able to sell. You won’t want to put your non-exempt home up for sale because this can negatively affect you later.
How do you sell your house after filing for Chapter 7? Well, you’ll want to consider everything you’ll need as well as the bankruptcy and real estate laws in New York. To be successful at selling your home after filing for Chapter 7 bankruptcy, you’ll need to know:
There are dozens of bankruptcy and real estate laws active in New York. However, you only need to be concerned about laws surrounding exempt and non-exempt property. These two laws will pertain to your situation, so you’ll want to know their ins and outs.
In New York, under Chapter 7 bankruptcy, a trustee can sell or auction off any part of the whole of your non-exempt properties. When they do this, they’ll distribute the profits amongst your borrowers and lenders.
Chapter 13 is a little different. Unlike Chapter 7, Chapter 13 will allow you to keep all property you previously owned before filing for bankruptcy. That being said, you will still need to pay all the fees for non-exempt property equity.
In New York, some property is automatically exempt. These properties include government-owned buildings, buildings owned by religious groups, and property owned by the disabled.
If you’re looking for ways to have your property exempt, there are a few ways you can qualify:
Under Chapter 7 bankruptcy in New York, there are different values that the courts can exempt. Leave the Key can help as we buy homes Brooklyn residents want. The courts base these values on where in New York the property is located:
Something to keep in mind is your marital status as certain regions will alter the amount based on it. For example, in Suffolk county, the exemption value doubles. If you live in Suffolk County and are thinking, “I need to sell my house fast Long Island,” then you need experts familiar with the area.
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To sell your home after you’ve filed for Chapter 7 bankruptcy, you’ll need to apply for a property exemption unless your property falls under one of the automatically exempt categories. To file for an exemption, here’s what you’ll need to do.
First, you’ll need a No Distribution Report. This will state that you’re no longer bankrupt and that you can sell your current home.
Once you’ve obtained the No Distribution Report, you’ll want to inform your attorney and trustee. Having an open line of communication for why you’re selling your home with them is crucial to ensuring everything goes smoothly. Your attorney will document everything needed for the transition.
You’ll need to inform your real estate agent. They’ll be able to help you sell your property better than you can on your own. Asking friends, family and searching the internet can help you find a great real estate agent.
You’ll then need to file a motion to sell. A motion to sell is an official form that legalizes the process. Your bankruptcy trustee will need to sign the document as a witness stating they’re allowing you to sell the property.
Next, you’ll need a statement of sale. This states all the deductions from the trustee, the home’s current selling price, and the amount you’ll receive after the transfer of ownership.
Last but not least, you’ll need to obtain the discharged debt. This is the final process of selling your home after filing Chapter 7 bankruptcy in New York. Your attorney will need to sign this document to finalize the ownership transfer.
Sometimes filing for bankruptcy is the only option. If you need to declare bankruptcy, here are the documents needed to file for Chapter 7 bankruptcy:
To file for a homestead exemption, you may need some additional documents:
Filing for bankruptcy shouldn’t affect you if you’re searching for a new home. Whether you’ll be able to afford a new home is another story, but you should be able to purchase one regardless of if you’ve filed bankruptcy.
On the other hand, filing for Chapter 7 bankruptcy can affect you selling your current homestead. To be able to sell your home in New York after filing for Chapter 7 bankruptcy, you’ll need to file for a homestead exemption.
Only then can you proceed with the sale of your home. Getting an exemption granted by the courts is the only way to ensure that you see the profits from your home sale. Knowing companies that buy houses for cash can be beneficial in the process too.
Selling your home after filing for Chapter 7 bankruptcy isn’t impossible. While there are obstacles you’ll need to overcome, you can still find yourself a new home after declaring bankruptcy.
As long as you understand what you need to do, filing for a homestead exemption, and follow all the steps in the process, you’ll be able to sell your home.