Menu Close

Can I sell my house after Chapter 7 discharge?

Can I sell my house after Chapter 7 discharge?

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 long after a Chapter 7 can you buy a house?

If you’ve gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan. Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy’s dismissal or discharge to get a USDA loan.

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.

How soon can you buy a car after filing Chapter 7?

Ideally, you should at least wait about six months before you apply for an auto loan. That gives you time to repair your credit and rebuild credit, too. You make payments on any loans you have left to build a positive credit history. If possible, you can get a secured credit card to build more credit history faster.

Can I keep my house and car in a Chapter 7?

Chapter 7 bankruptcy allows you to keep your home if 1) you are current with your mortgage payments when you file for bankruptcy, and 2) your state laws approve of the bankruptcy exemption. Regarding your automobile, most chapter 7 cases allow you to keep the vehicle if you are current with payments.

What happens after you file a Chapter 7 bankruptcy?

After your attorney files a Chapter 7 Bankruptcy, the court clerk sends out notices to each of the creditors you list in your petition. These notices inform the creditor that a bankruptcy has been filed, and its right to be involved in the process.

What happens when you surrender property in Chapter 7?

When you surrender property in Chapter 7 bankruptcy, you essentially give it back to the creditor. This is the simplest method of dealing with secured debt and property in Chapter 7. When you surrender the property, the creditor’s lien is removed. When you get the bankruptcy discharge, your personal liability for the secured loan is wiped out.

When to let go of a car in Chapter 7 bankruptcy?

You’ll let the court and the lender know of your decision to let go of the car when you complete the bankruptcy form called the Statement of Intention for Individuals Filing Under Chapter 7 Bankruptcy.

What happens to my property after I file bankruptcy?

What follows is an overview of some other items that may come up after your bankruptcy has been filed. One of the forms you will file with the bankruptcy court is called the Statement of Intention. In this form, you tell the court what you plan to do with property that is securing a debt you owe, like real estate or a vehicle.