If you’re trying to recover from a recent financial hardship, one of the first things you might ask yourself is, “How long after bankruptcy can I sell my house?” The answer depends on several factors, including the type of bankruptcy you filed.
At My Tennessee Home Solution, we buy houses in Nashville, TN, and help homeowners move forward with flexible solutions. Here, we explain what you should know about selling your home after bankruptcy.
What Does It Mean To File for Bankruptcy?
Bankruptcy is a way for people and businesses to obtain financial relief from excessive debt at the federal level. It typically requires filers to either make restructured repayments or liquidate their assets to discharge or cancel the debt.
Most people file one of two types of bankruptcy: Chapter 7 and Chapter 13. With Chapter 13 bankruptcy, people with regular income can pay back some or all of their debts through a repayment plan over three to five years. Filing Chapter 7 usually requires liquidating assets to pay off debts.
Can You Sell Your House After Chapter 7 Bankruptcy?
If you’re asking, “How long after bankruptcy can I sell my house?” you’re not alone. In the case of a Chapter 7 bankruptcy, you must wait until the courts discharge and close your case before you can sell your house. After that, the waiting period to sell is about three to six months.
To qualify, you must retain ownership of the home using a homestead exemption during the bankruptcy process. There must also be no trustee with a claim on the property.
What To Know About Selling a Home After Chapter 13 Bankruptcy
In Chapter 13, your assets will be part of the bankruptcy estate, which is managed by a trustee. To sell your house after bankruptcy, you must get approval from the bankruptcy court. This requirement ensures that the sale doesn’t negatively affect your creditors.
Selling a House After a Bankruptcy Discharge
Selling before bankruptcy might seem like the better option, but this can often backfire. To sell after a bankruptcy discharge, the property must no longer be part of the bankruptcy estate. If the case is not yet closed, you may still need permission from the trustee.
When you’re ready to explore your options, consider a fast sale to a cash buyer. Cash buyers can submit offers on your home during and after the bankruptcy. If you find an offer you like, you can present it to your trustee or the bankruptcy court.
Get a Cash Offer for Your Home Today
You may wonder, “How long after bankruptcy can I sell my house?” as you consider your next move. Your timeline will depend on your specific situation, but the team at My Tennessee Home Solution can help you along the way. We offer fair cash offers for homes throughout Nashville to help local homeowners who are ready for a fresh start.
Whether you’re interested in selling during bankruptcy or after a bankruptcy discharge, we can help you understand your options. Contact My Tennessee Home Solution at (615) 933-5431 to get started.
