Bankruptcy in Missouri: Will I Lose My House?
If you are considering filing for bankruptcy in Missouri, you may be wondering what will happen to your house. Bankruptcy can be a complex and overwhelming process, and it's important to understand your options when it comes to your assets, including your home.
Let’s look at the different types of bankruptcy, what happens to your assets in bankruptcy, and how selling your houses to avoid bankruptcy can help you in this difficult time.
What is Bankruptcy in Missouri?
Bankruptcy is a legal process that allows individuals and businesses to eliminate or repay their debts under the protection of the court. In Missouri, there are two main types of bankruptcy: Chapter 7 and Chapter 13.
- Chapter 7 bankruptcy is also known as "liquidation" bankruptcy, as it involves selling off certain assets to pay back creditors.
- Chapter 13 bankruptcy, on the other hand, involves creating a repayment plan to pay back creditors over a set period of time.
Filing for bankruptcy can be a difficult decision, but it can also provide much-needed relief from overwhelming debt. If you are considering bankruptcy, it's important to consult with a qualified bankruptcy attorney to understand your options and make informed decisions.
What Happens to Your Assets in Bankruptcy?
When you file for bankruptcy, all of your assets become part of the bankruptcy estate. This includes your home, as well as any other property you own. In a Chapter 7 bankruptcy, the trustee will sell off certain assets to pay back creditors. In a Chapter 13 bankruptcy, you may be able to keep your assets as long as you continue to make your monthly payments.
If you own a home, it's important to understand the equity you have in the property. Equity is the difference between the value of your home and the amount you owe on your mortgage. If you have a significant amount of equity in your home, you may be required to sell it in a Chapter 7 bankruptcy to pay back creditors.
Can I Sell My House to Avoid Bankruptcy?
If you are facing overwhelming debt and are considering bankruptcy, you may be wondering if you can sell your house to avoid the process. The short answer is yes, you can sell your house before or during bankruptcy.
One option for selling your house in bankruptcy is a cash home sale. This involves selling your house to a real estate investor for cash, typically at a discounted price. While you may not receive as much money as you would in a traditional home sale, a cash home sale can help you avoid foreclosure and get out of debt quickly.
Selling your house in a cash home sale can also help you avoid the potential consequences of a bankruptcy. For example, if you have a significant amount of equity in your home, you may be required to sell it in a Chapter 7 bankruptcy to pay back creditors. By selling your house before filing for bankruptcy, you can potentially keep more of your equity and use it to pay off other debts.
Pros and Cons of Selling Your House in Bankruptcy
While selling your house in bankruptcy can be a good option for some individuals, it's important to understand the potential pros and cons before making a decision.
- Selling your house as-is can help you get out of debt quickly and avoid the potential consequences of bankruptcy.
- A cash home sale can provide you with the funds you need to start over and rebuild your financial future.
- You may not receive as much money as you would in a traditional home sale, and you may lose some of your equity in the process.
- Selling your house in bankruptcy can be a complex process that requires the assistance of a qualified real estate professional.
If you are facing overwhelming debt and are considering bankruptcy, it's important to understand your options when it comes to your assets, including your home. While selling your house in bankruptcy can be a complex process, it can also provide you with the relief you need to start over and rebuild your financial future.
Sell Your House Fast in Kansas City, Missouri
If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact KC Cash Closing. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 816-659-2259 to get a fast cash offer from our local home buyers in Missouri.