Sometimes, circumstances outside of your control can cause you to fall behind on your mortgage payments. Then, when this becomes a cycle, you’ll eventually go into default and have to declare bankruptcy.
Although being in a state of bankruptcy is no joyful matter, it has to be done. If you’ve exhausted all options available to you and still decided to file bankruptcy, it’s important to know what you’re getting into. You should know what your options are and how they will impact your existing mortgage, or your future ability to obtain home loan financing.
If you’re a homeowner deep in debt, keep reading, because this article will tell you everything you need to know about bankruptcy and how it can affect your Chicago property. Learn about bankruptcy in Chicago and what you can do moving forward.
How Does Bankruptcy Affect Your Lexington Property?
Whether or not you keep your property depends on the kind of bankruptcy you’ve filed. Two kinds of bankruptcies are the most used: Chapter 7 or Chapter 13 bankruptcy. If you file under Chapter 13, you’re most likely going to keep your property. But if you file under Chapter 7, then you may have to give up some of your properties. However, keep in mind that this is just a generalization. We will be explaining the difference in depth below.
What’s The Difference Between Chapter 7 And Chapter 13?
Chapter 7 bankruptcy is also known as total bankruptcy. It’s essentially a deletion of all your outstanding debt in exchange for selling or liquidating some, if not all, of your property to pay for the debt. However, the catch is that in a Chapter 7 bankruptcy, it might be difficult to sell your home. If you want to sell, you must first obtain judicial approval. If the court-appointed trustee wants to sell your home to generate cash for creditors, he also must get permission from the court.
On the other hand, Chapter 13 bankruptcy works like a repayment plan. In a Chapter 13 bankruptcy, you file a plan with the bankruptcy court indicating in detail how you will repay your creditors. Some debts will be paid in full, while others will be paid partially, some possibly not at all, depending on what you can afford. It permits you to keep your house or sell it if you benefit but without causing financial harm to your mortgage lender. However, you must still get permission from the trustee to sell or refinance your home when you choose to file a Chapter 13 bankruptcy. Additionally, it is a kind of consumer bankruptcy where you still have enough money to pay your debts partially. In Chapter 13, you’re likely able to keep your property, as your bankruptcy trustee will set up a repayment plan to your creditors, including your mortgage holder.
If you’re thinking of selling your home, why not choose to sell to a professional home buyer? The process is quick, painless, and you get paid in cash. Sell your home in bankruptcy to Onyx Homes LLC. Here at Onyx Homes LLC, we buy houses in Chicago, IL, we can help you pay off your debts at no extra cost to you!
Sell to a Professional Home Buyer!
If you find yourself thinking, “how do I sell my house fast in Chicago, IL” then maybe you should consider selling your property to a cash home buyer. Selling to a professional home buyer like Onyx Homes LLC is one of the best decisions you can make for yourself and your probate property.
READY TO SELL YOUR HOME?
Here at Onyx Homes LLC, we are experienced cash home buyers in Chicago, IL. We will provide you with the best offer for your home and deliver a quick and painless close to the buying process. If you don’t want to go through the hassle of listing your home and working with a real estate agent, going through the motions of a regular sale, you can always opt to just sell your home to us! We’ll take care of the rest.
Our goal at Onyx Homes LLC is to improve the overall quality of housing for the residents of Chicago, IL. We buy houses in just about any condition and situation, including foreclosure, late mortgage payments, or fair market value. You can either take a step forward into your new life by accepting our fair cash offer, or take your chances with the long arduous process of traditional home selling. For more information about our home buying process, give us a call at (847) 262-9012 today.
