How Does Bankruptcy Affect my Durham NC Property and What Can I Do About It?
Bankruptcy law in North Carolina can be difficult to navigate if this is your first time dealing with financial instability. Despite how dire circumstances might seem at the moment, there are lots of avenues for you to rise above bankruptcy and lots of these can be presented to you by banks or lenders.
Before you find out how this can affect your property, we’ve compiled a few key things about bankruptcy you should understand. Read on to go through several tips we’ve compiled.
Know the difference between Chapter 7 and 13
In terms of real estate, here’s what you need to know about Chapter 7 bankruptcy. It will be much more difficult for you or a trustee to sell your home to generate more income without court approval. Once you fall under this, it’s adamant that you seek as much legal help as you can while seeking court approval.
Chapter 13, on the other hand, means that you can keep your home or sell it as long as this decision doesn’t cause financial trouble for your lender. You still need to get permission from your court-appointed trustee to do so, but the process will be much smoother.
You can still get a mortgage after bankruptcy
Depending on how you stand with the court, it’s still possible for you to get a mortgage after bankruptcy. You can get one as late as two years after your bankruptcy discharges whereas it could take you four to six months for your discharge date to come.
You might want to get a more secure loan during this time, like one backed by the Federal Housing Administration. This might cause you to wait longer than if you would apply for a conventional loan, but these loans are generally designed to make you worry less.
It’s possible to still sell your home
To find out how to sell your home, let’s look at this table portraying conventional bankruptcy situations.
Understand that different rules will apply to different situations, and you can always consult your attorney if you get confused. As a general rule, you can’t do anything major with your property unless you get court approval, so ensure that this is settled before proceeding.
Understand that there is a possibility that selling your home might not cover all of your debt. If this happens, don’t panic, and always consult your lender regarding anything else you can possibly do.
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