Can I Sell My Home During A Personal Bankruptcy?
Selling Your Home While in Bankruptcy
Bankruptcy is a last resort when you are trying to recover from debt and gain relief.
However, for many people, it will be the only option.
If you are struggling with a high level of debt, then you can’t rely on budgeting.
You will have to take drastic action and file.
This presents numerous questions including the assets that you want to keep or rather, can keep.
For instance, you might want to consider whether you can keep your house and whether you want to keep it.
A lot of people want to start fresh anyway and this includes selling the property.
Other people will want to keep the property to ensure that they have stability with their family.
Regardless of your thinking, that you need to consider these issues carefully and it’s important that you don’t act too quickly.
Can You Sell Your Property After You File?
Not immediately because once you file you will need to put all your assets in the hands of the trustee.
If you want to sell the property, then you will need to discuss it with them first.
You will need to provide various pieces of information including the amount you expect to earn from the sale, that the mortgage payout will be and the closing costs.
It’s possible that the sale of your home will provide a lot of equity.
If that’s the case then this is money which can be used to pay your creditors and the trustee will be keen to work with you to complete the sale.
Don’t forget, you won’t gain money if you sell the property.
All the money made from the sale will be used to pay off your creditors.
This also means that if the creditors stand to gain nothing from a home sale then your trustee probably won’t agree to sell it at all.
If this is the case, then you’ll need to wait to be discharged before you can sell the property.
You must make sure that you are thinking about this decision carefully.
Remember, once you start the process of selling your home, you will need to proceed until the bankruptcy is complete.
That’s why it’s worth consulting with your trustee and getting their advice first.
Ultimately, the right decision is always going to depend on how much equity is in the house as well as how much money it can provide to creditors.
Are you struggling with decisions like this during your bankruptcy?
Perhaps you are interested in learning more about the bankruptcy process?
If so we can help.
We have ensured that more than a hundred thousand Canadians have gained the debt relief they need.
So, we are confident that we can support you too.
Get in touch now on the phone or fill in an evaluation form available through our website.