Applying for Chapter 7 bankruptcy is a significant financial move that will have lasting repercussions in your life, particularly on your home. If you find yourself asking, “How quickly after Chapter 7 can I sell my house fast in Milwaukee?” you’re not alone. This is a common question for homeowners looking to rebuild their lives after filing for bankruptcy.
Here, we will guide you through the fundamentals of Chapter 7, what becomes of your house, and when you are allowed to sell it. Whether you are just beginning the bankruptcy process or have already been given a discharge, we will describe what you need to do to proceed with confidence.
Understanding Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also called liquidation bankruptcy, allows individuals to eliminate most unsecured debts, such as credit card debt and medical bills. In exchange, some of your possessions are sold to pay creditors. A trustee is appointed to your case to oversee the process. The whole process typically takes three to six months, and when it’s finished, you receive a financial fresh start.
What Happens to Your Home?
Whether you can hold onto or sell your home in or after bankruptcy depends mostly on equity. Equity is the value between your home’s market price and what you still owe on the mortgage.
In Milwaukee, bankruptcy statutes permit a homestead exemption, which shields a portion of the equity in your primary home. If your home’s equity is completely sheltered by this exemption, your house is exempt, and the trustee will not sell it. If it’s not exempt, the trustee can choose to sell the house to pay off your debts.
When Can You Sell Your Home After Chapter 7
If your house is exempt and you’ve been issued your bankruptcy discharge, you’re generally able to sell it immediately without a court order. In this case, you’re free to keep any money left over after paying off your mortgage.
But be careful with timing. Even if your case remains open even after discharge, the trustee can still claim the sale proceeds. It is advisable to sell your home only after your bankruptcy case has been closed officially.
If your home is nonexempt, and the trustee chooses not to sell it (due to low equity), you’ll still need to wait until your case closes to avoid legal complications. Sometimes, the court or trustee might require approval before the sale can proceed.
Reinvesting Sale Proceeds
Selling your home in or immediately following bankruptcy may come with certain conditions. For example, if you sell before the case is closed, you may be required to reinvest the sale proceeds into a new home within a specific timeframe (usually six months) to prevent losing the property to creditors.
Remaining in Your Home Following Chapter 7
Bankruptcy doesn’t force you to leave right away. If you have an exempt home and are current on mortgage payments, you can reside in your house for as long as you want, even after bankruptcy.
But if you’re delinquent on payments, the lender might initiate foreclosure proceedings after the bankruptcy is completed.
Do You Need to Sell Fast? We Can Help.
If you’re in a bind and have to sell your house fast, using professional cash home buyers in Milwaukee can be a game-changer. At Metro Milwaukee Home Buyer, we buy houses in Milwaukee quickly and hassle-free. You won’t have to worry about repairs, inspections, or unexpected costs. We’ll make you a fair cash offer, handle all the paperwork, and close when you’re ready.
If you need to sell your house quickly in Milwaukee, we can help you. There are no commissions or hassles with us.
Conclusion
Selling your home after Chapter 7 bankruptcy in Milwaukee will have a great deal to do with your home’s equity, your exemption status, and if your case is open. Waiting for the case to close is the best bet for most. If you’re unsure, consult a bankruptcy lawyer or contact reputable home buyers who are knowledgeable about the process and can guide you through it with understanding.