You should be aware that you do have options if you are battling debt that just won’t go away. Regardless of how diligent you are about paying your bills and other obligations, you risk falling behind eventually. You might even reach the point where filing for bankruptcy is necessary. Filing for bankruptcy can help you rediscover financial stability and reduce some of the stress that debt has brought to you and your loved ones.
It has been said that filing for bankruptcy feels like reaching rock bottom financially. Despite the fact that bankruptcy discharges prior debt, it stays on your credit report for seven to ten years, which adversely impacts your long-term chances of being accepted for a mortgage or other types of credit.
If you’re a Cleveland homeowner who is heavily in debt, keep reading because this article will explain the basics of bankruptcy and how it could impact your home. We will also discuss important considerations for home sales when filing for bankruptcy.
Whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy will depend on the specifics of your case and the steps required to seek bankruptcy.
Filing for Bankruptcy: What’s The Difference Between Chapter 7 And Chapter 13?
There are two main bankruptcy strategies that you might have open to you if you’re considering filing for bankruptcy in Cleveland.
First, Chapter 13 enables debtors to restructure their debts, greatly reducing their monthly payment obligations. The remaining balance of their qualifying debts will be forgiven once they have finished a 5-year repayment schedule.
Second, registrants with low incomes who cannot reasonably be expected to repay their creditors under a Chapter 13 repayment plan have the option of filing under Chapter 7. Many types of debt can be eliminated in as little as 90 days by filing for Chapter 7 bankruptcy. Because of this, filing under Chapter 7 is typically regarded as the most effective debt relief option than others if you are eligible.
Total bankruptcy is another name for Chapter 7 bankruptcy. It entails getting rid of all your debt in return for selling or liquidating some, if not all, of your possessions in order to pay off the debt. The drawback is that it could be challenging to sell your home in a Chapter 7 bankruptcy. You need to first get a judge’s okay before you can sell. The court must also give its approval before the court-appointed trustee can sell your house in order to pay creditors.
However, Chapter 13 bankruptcy functions much like a repayment schedule. When filing for Chapter 13 bankruptcy, you must submit a detailed plan to the bankruptcy court outlining how you will pay back your creditors. Depending on what you can afford, some debts will be paid in full, while others will only be partially or even not at all. It enables you to keep your home or sell it if doing so benefits you while avoiding doing so at the expense of your mortgage lender. However, if you decide to file a Chapter 13 bankruptcy, you still need the trustee’s approval before you can sell or refinance your house.
Bankruptcy Tips in Cleveland, Ohio
- Take credit counseling
- Seek legal advice regarding bankruptcy proceedings
- Collect your Cleveland bankruptcy files and documentation
- Complete the necessary bankruptcy forms
- Go to court and pay your fees and file your forms
- Mail documents to your trustee
- Attend your 341 meeting
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. Interested? Look no further than Rylo Homes. If you want to sell your house fast in Cleveland, Ohio, without selling it the old fashioned way, just sell your home to us.
Sell to A Professional Home Buyer!
If you live in Cleveland, Ohio and are interested in selling your home, we can help here at RC Home Buyers. We are cash home buyers in Cleveland, Ohio interested in buying your home regardless of the situation or condition it is in, so you don’t have to worry about selling your home while dealing with bankruptcy.
Here at RC Home Buyers, we buy houses in Cleveland, Ohio regardless of the condition or situation it is in. We can provide you with the best price for your home while still ensuring a quick close so you can sell your home for cash, as soon as possible. If you don’t want to worry about the inconvenience of listing your home and dealing with bad tenants at the same time, just sell your home to us! We’ll take care of the rest.
Our home buying process does not involve getting pre-qualified by a mortgage bank in order to obtain a home loan or listing the property on the MLS or any other listing platform. The reason our team at RC Home Buyers is able to purchase properties very quickly is because we use our own money, meaning we can close faster than traditional buyers. Give us a call at (614) 714-1794 and learn more about the home buying process today!