Yes, you can legally sell your house during bankruptcy, as long as you work out an arrangement with the mortgage company. There are no laws in Michigan that prohibit you from selling your house to avoid bankruptcy. Furthermore, the lender will likely work with you because they do not want to deal with a house in foreclosure.
If you are trying to avoid bankruptcy, the fastest way to sell your house is a cash home sale. A cash sale gives you the flexibility to sell your house fast in Detroit, Michigan. In most cases, you can close in as little as one to three weeks and halt the bankruptcy process. Plus, you do not have to pay any selling expenses.
What is the Bankruptcy Process in Michigan?
The bankruptcy process in Michigan involves several steps, including:
- Filing a petition with the bankruptcy court.
- Completing a credit counseling course.
- Attending a meeting of creditors, also known as a 341 meeting.
- Completing a financial management course.
- Filing any required schedules and statements with the court.
- Waiting for the court to approve a plan of reorganization or to discharge the debts.
It is important to note that the bankruptcy process may vary based on the type of bankruptcy you are filing for. You may want to consult a bankruptcy attorney to guide you through the process so that you can sell your house without problems.
How Long Does Bankruptcy Take in Michigan?
The length of time it takes to complete a bankruptcy case in Michigan will depend on the type of bankruptcy you are filing for and the complexity of your case.
Chapter 7 bankruptcy typically takes around 3-6 months to complete from the date of filing. This is the most common type of bankruptcy and is designed for individuals and businesses with primarily consumer debts, who do not have the means to repay them.
Chapter 13 bankruptcy typically takes 3-5 years from the date of filing. This type of bankruptcy is designed for individuals with regular income who have assets they want to keep, but are unable to pay their debts in full. Under Chapter 13, the debtor must propose a repayment plan to pay back some or all of their debts over a 3-5 year period.
It is important to note that the length of time it takes to complete a bankruptcy case can vary greatly depending on the complexity of your case and the workload of the bankruptcy court. So, you need to sell your house as-is for cash as soon as possible.
What Is the Best Way to Sell My House During Bankruptcy?
A cash home sale can be an attractive option for selling your house during bankruptcy, as it can allow you to close the sale quickly and avoid some of the complications that can arise with traditional home sales. Some benefits of a cash home sale during bankruptcy include:
- Faster closing times: Cash sales can often close much faster than traditional sales that involve financing, which can take weeks or even months to finalize. Selling your house quickly to pay off debts or avoiding foreclosure can be beneficial.
- Fewer contingencies: A cash sale doesn’t require a home inspection or appraisal, so fewer contingencies need to be met before the sale can be completed.
- Simplicity: A cash sale is a straightforward process, with no need to deal with the complexities of mortgage financing.
- Avoiding Foreclosures: In some cases, homeowners facing foreclosure may be able to sell their property quickly to a cash buyer and avoid the foreclosure process.
A cash home sale may appeal more to the trustee as the cash sale can close quickly, and the proceeds can be used to pay off the creditors.
M1 Home Buyers Can Help You Avoid Bankruptcy with a Cash Home Sale
If you are looking for a way to avoid bankruptcy, but do not have the money to pay your debts, we have the solution. M1 Home Buyers can appraise your house and make a fast cash offer. You can close in as little as seven days. No repairs. No closing closets. No realtor commissions. Call 248-397-5800 to get a fast cash offer.