Can I Sell My House During Bankruptcy in Rhode Island?
Yes, you can sell your house during bankruptcy. There are no laws in Rhode Island that prevent you from selling your house to avoid bankruptcy or stop the bankruptcy process. You simply need to follow the bankruptcy guidelines, which include working out a payoff arrangement with your mortgage lender and other creditors.
The proceeds from the cash home sale may be subject to the claims of the bankruptcy trustee and your creditors, depending on the type of bankruptcy you file and the exemptions you are allowed to claim under Rhode Island law. It is best to consult with a bankruptcy attorney before making any decisions about selling your house during bankruptcy.
What is the Bankruptcy Process in Rhode Island?
The bankruptcy process in Rhode Island is similar to the process in other states and follows the federal bankruptcy laws. The process typically involves the following steps:
- Pre-filing counseling: Before you can file for bankruptcy, you are required to complete a credit counseling course from an approved agency.
- Filing the petition: You will need to file a petition with the bankruptcy court in Rhode Island, along with various schedules and forms detailing your assets, liabilities, income, and expenses.
- Automatic stay: Once the petition is filed, an automatic stay goes into effect, which stops most collection activities, including foreclosures and wage garnishments.
- Meeting the creditors: You will be required to attend a meeting of creditors, also known as a 341 meeting, where the trustee and your creditors can ask you questions about your finances and the information in your petition.
- Discharge: If your case is not dismissed, you will receive a discharge, which eliminates your personal liability for most dischargeable debts.
- Completing a financial management course: After filing for bankruptcy, you will be required to complete a financial management course from an approved agency.
- Close the case: After completing the above steps, the case is closed.
It is important to note that the specific requirements and steps may vary depending on the type of bankruptcy you file (Chapter 7 or Chapter 13) and your specific circumstances.
Can a Cash Home Sale Get Me Out of Bankruptcy?
A cash home sale may be able to help you get out of bankruptcy, but it depends on the specific circumstances of your case and the type of bankruptcy you have filed.
If you file for Chapter 7 bankruptcy, any proceeds from the sale of your home may be considered part of your bankruptcy estate and used to pay off your creditors. However, if you are able to claim exemptions under Rhode Island law, you may be able to keep some or all of the proceeds from the sale of your home.
If you file for Chapter 13 bankruptcy, the proceeds from the sale of your home may be used to pay off your creditors according to the terms of your repayment plan. In this case, the cash from the sale of your home can be used to pay off your mortgage and other debts included in the plan.
How Do I Sell My House to Avoid Bankruptcy?
The best way to sell your house to avoid bankruptcy is to work with a company that buys houses in Rhode Island. The process may look like this:
Step 1: Contact a Local Home Buyer
The first step is to contact a local home buyer or house-buying company in Rhode Island. You discuss your current situation and house details. The buyer may request a quick visit to assess the property.
Step 2: Get an Offer an Close the Sale
If the buyer is interested in the property, they will make a cash offer – usually within 24 to 48 hours of the initial meeting. If you accept the offer, the final step is to transfer the house title
Step 3: Pay Off the Creditors
You can use the proceeds from your sale to pay off your mortgage and other debts. A cash home sale gives you the chance to pay your debt, avoid bankruptcy, and save your credit.
Sell My House to Avoid Bankruptcy in Rhode Island
If you need to sell your house before bankruptcy, we can help. Prime Real Estate Investments can buy your house as-is and pay cash. You can close in as little as seven days, plenty of time to avoid or stop bankruptcy before it hurts you financially. Call 401-256-2667 to get a fast cash offer on your house.