If you’re struggling with debt and facing the possibility of bankruptcy, you may be wondering what will happen to your mortgage. Will you lose your home? Will you be able to sell it to avoid bankruptcy?
What are the benefits of a cash home sale during bankruptcy?
The bankruptcy process in Missouri is designed to help individuals and businesses resolve their financial difficulties and obtain a fresh start. The two most common types of bankruptcy filed in Missouri are Chapter 7 and Chapter 13 bankruptcy. Here’s a brief overview of the bankruptcy process in the state:
Before filing for bankruptcy in Missouri, you must complete a credit counseling course from an approved agency within 180 days prior to filing. This requirement helps ensure that you understand your financial situation and explore potential alternatives to bankruptcy.
The process officially begins when you file a bankruptcy petition with the federal bankruptcy court. The petition includes detailed information about your assets, liabilities, income, and expenses, as well as a list of all creditors.
Once you file for bankruptcy, an automatic stay is put into effect, which temporarily stops most collection actions, including foreclosure, repossession, and wage garnishments.
About a month after filing, you’ll attend a meeting of creditors, where the bankruptcy trustee and your creditors can ask questions about your financial situation and the bankruptcy filing.
In a Chapter 7 bankruptcy, the trustee may liquidate non-exempt assets to repay creditors. If you have no non-exempt assets or insufficient assets, the court will likely discharge your eligible debts, releasing you from liability.
In a Chapter 13 bankruptcy, you’ll propose a repayment plan to pay off a portion or all of your debts over a 3-5 year period. After completing the plan, the court will discharge any remaining eligible debts.
Before receiving a discharge, you must complete a debtor education course from an approved agency to learn about personal financial management.
Once you complete the required steps in the bankruptcy process, the court will issue a discharge, effectively wiping out eligible debts and giving you a fresh financial start.
Bankruptcy is a legal process that helps individuals and businesses who are unable to pay their debts.
When you file for bankruptcy, your mortgage lender will be notified.
If you’re facing bankruptcy, you may be considering selling your house to avoid bankruptcy.
One of the biggest benefits of selling your house for cash during bankruptcy is that it can help you avoid foreclosure. If you’re behind on your mortgage payments and facing foreclosure, selling your house for cash can help you pay off your debts and avoid the negative impact of a foreclosure on your credit score.
Another benefit of a cash home sale during bankruptcy is that it can help you get a fresh start. By selling your house for cash, you can eliminate your mortgage debt and use the proceeds to pay off your other debts or start over in a new home.
There are many misconceptions about selling your house during bankruptcy.
One of the biggest misconceptions is that you’ll lose your home if you file for bankruptcy. However, if you’re currently on your mortgage payments, you may be able to keep your home as long as you continue making your payments.
If you’re facing bankruptcy and wondering how it will affect your mortgage, selling your house for cash may be a good option to consider. By working with a reputable cash home buyer and an experienced bankruptcy attorney, you can get a fresh start and avoid the negative impact of a foreclosure on your credit score.
Whether you decide to sell your house for cash or explore other options, it’s important to take action as soon as possible to avoid falling further into debt. Remember that bankruptcy is a legal process designed to help you get back on your feet, and there are resources available to help you through this difficult time.
If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact KC Real Estate Buyers. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 816-895-2999 and get a fast cash offer from our local home buyers in Missouri.