The short answer is: Yes, you can sell your house after a bankruptcy discharge. … Discharged bankruptcy doesn’t necessarily mean that your case is finalized and closed.
How soon can I sell my house after Chapter 7?
The time can be as brief as six months or as long as two years. Also, you might live in a state wherein the courts have concluded that the Chapter 7 trustee cannot collect the sales proceeds even if the state law exemption period has expired.
What happens if I sell my house after bankruptcies?
Once the bankruptcy case is closed, the petitioner can sell any remaining assets they still own, including their home. If they still own their home once their bankruptcy case is closed, that means the bankruptcy trustee abandoned the house as an asset of the bankruptcy estate.
What happens to my home after Chapter 7 discharge?
Due to the mechanics of Chapter 7 Bankruptcy, you will likely receive a discharge and no longer be legally obligated to personal repay the loan. However, the lien on the property will remain, and the lender will still have a right to foreclose on the property if the debt is not paid.
Can a trustee sell a house after discharge?
Trustees will generally sell property as soon as practical. They want to get the money into the estate. Section 129AA of the Bankruptcy Act requires trustees to realise property within a period ending six years after the discharge of the bankrupt.
What happens if I sell my house during Chapter 7?
You can sell your home but the timing of the sale or withdrawal is crucial. Receiving the proceeds before you file your bankruptcy would subject you to the 6-month / 60-day reinvestment rule and any proceeds not reinvested would become the property of your estate and go to pay your creditors.
Do I have to sell my house if I file Chapter 7?
Under a Chapter 7 bankruptcy, the bankruptcy trustee can sell your home to pay your creditors. If you have little to no equity in your home, you don’t have to worry. … In some cases, however, your home’s equity is more than the exemption and can trigger a sale.
How long can Chapter 7 trustee keep case open?
The Chapter 7 trustee can keep the case open for about four to six months after filing the bankruptcy papers. However, this does not end with discharge, but with the court’s final decree.
Do I still own my home after Chapter 7?
If you kept your house throughout the bankruptcy process, you are free to keep your home after the bankruptcy – as long as you continue to pay the mortgage. It may be that after you are free of all the rest of your debt you will be able to afford the mortgage payments easily. If so, you’ll be able to keep your house.
Can I sell my house if I did not reaffirm?
Since you didn’t sign a reaffirmation agreement on your mortgage, you’re not liable on the debt but the lender still has a lien on the house. … If the mortgage for more than the house is worth, then you can’t sell it unless you get the bank to agree to a short sale.
Can you buy a house after Chapter 7 with a co signer?
Can you buy a house after Chapter 7 with a co-signer? Yes, having a co-signer can improve your chances of getting a mortgage after a bankruptcy.
Can I get a conventional loan after Chapter 7?
To qualify for a conventional loan after Chapter 7 bankruptcy, borrowers need to wait 4 years after the discharge date. There a four waiting period after the Chapter 7 Bankruptcy discharged date. … 3% to 5% down payment is required on conventional loans. The minimum credit score required on conventional loans is 620 FICO.
Can creditor take your house?
The short answer is no, a debt collector cannot take your house. However, a creditor whose loan is secured by your house can foreclose on the loan and take the house, and depending on your state laws, a debt collector without a security interest in your home may be able to put a lien on it.
Does trustee check your bank account?
You may be worried your bank will freeze your account as soon as it becomes aware of the bankruptcy but that rarely happens. … Please be aware that your trustee does not have access to your personal account. A separate account is opened to manage your bankrupt estate.