Bankruptcy can be a tough time for those going through it and the main goal many have in mind is how they can gather funds to pay back debt and set themselves up for a better position post-bankruptcy.
Depending on the kind of bankruptcy you file, you will have the option to sell off some of your belongings to help get raise money needed to pay back debts required by the court. The biggest asset you probably own is your house so you may have already thought to sell my home in bankruptcy in Naples FL.
However, bankruptcy law in Naples has its own intricacies and you may not be allowed to sell your home right away. Let’s get into bankruptcy law in Naples, FL when it comes to selling your home to see if it can be a viable option for you.
Selling your Naples, FL home in bankruptcy under Chapter 7 and Chapter 13 bankruptcy
The kind of bankruptcy you file is extremely important in determining if you’ll be able to sell your home in bankruptcy in Naples. The two main kinds of bankruptcy that a Naples resident can file are Chapter 7 and Chapter 13, which have two very different approaches to bankruptcy.
Chapter 7 bankruptcy is often referred to as “straight” bankruptcy. This is usually for those who have little assets and disposable income to be able to pay off their debt. In Chapter 7, bankruptcy law in Naples, FL states that your possessions and assets become part of your bankruptcy estate. You will be assigned a trustee who will evaluate your estate and determine which of your properties and assets can be sold off to help repay some of your debt.
Usually in this kind of bankruptcy, you cannot protect your house from being included in the estate, meaning it can be sold off by your trustee without your input. If you have filed for Chapter 7 bankruptcy, you will need to get permission from the court in order to be able to sell your home. This means it’s still very possible to sell your home in Bankruptcy in Naples, FL but will just involve more steps to do so.
Chapter 13 bankruptcy works more like a restructured payment plan. In this kind of bankruptcy, your debts won’t totally be erased, which is most likely in a Chapter 7 bankruptcy. Instead, Chapter 13 works to provide a new repayment plan for the person who filed bankruptcy, allowing them to repay their creditors over several years.
The main benefit here is that your home is usually protected, meaning you get to keep ownership and are free to sell it as long as it doesn’t cause financial harm to the mortgage lender.
Make selling your home in bankruptcy easier
Dealing with bankruptcy is tough work. Trying to sell you home in bankruptcy in Naples, FL will mean extra work in court if you’ve filed Chapter 7. You will need to file a Motion to Sell, notify your creditors, prove the value of your home, and propose how you will distribute the proceeds from the sale to repay your creditors.
The last thing you would want to do is add to the stress by taking the traditional route of selling your home. Instead of hiring a real estate agent, preparing & repairing your home, listing & marketing it and dealing with the normal closing process, why not consider selling your property to a professional homebuyer like Alpha Properties?
At Alpha Properties, we buy houses in Naples Florida in any condition, no matter what legal issues you may be facing. We offer cash for your home and can provide that offer to quickly in just a few easy steps. You won’t have to worry about conducting repairs or inspections, hiring an agent, or even paying commission and other fees.
We make selling your home in bankruptcy in Naples, FL real easy for you so you can focus on the things that matter most. Get quick feedback on exactly how much you can sell your home for and choose exactly when you want to close the deal. Let us help you through your bankruptcy and call us today to learn more about how much cash we can offer for your home!