One's ability to sell a house during bankruptcy depends on a number of different factors, including the chapter of bankruptcy they filed, the nature of the filer's debts, and the rules of the bankruptcy jurisdiction.
Many courts, though, look favorably on selling a house during bankruptcy, because the proceeds from the sale may potentially go a long way towards meeting a person's debt obligations.
To learn more about what you may sell during bankruptcy, fill out the brief form below for a free consultation with an attorney in your area.
There are two primary forms of personal bankruptcy, Chapter 7 and Chapter 13. When a person files for Chapter 7 bankruptcy, the bankruptcy court typically takes possession of some of the filer's assets.
These assets are then used to pay off debts. Important exceptions in this process, however, are known as bankruptcy exemptions, which may allow homeowners to sell their houses during bankruptcy. Here's how this may work:
Some state exemption laws even have provisions that protect money received in a recent home sale.
Since a filer's ability to sell a house during bankruptcy depends largely on state laws, speaking with a local bankruptcy lawyer may help provide more information.
While selling a house during Chapter 7 is no guarantee, most filers are able to sell their homes during Chapter 13. In Chapter 13 reorganization, filers are able to make payments on a restructured debt plan while continuing to work.
If a filer is looking to sell a home during Chapter 13, the following steps may be helpful:
If, instead of selling your house, you are looking to prevent home foreclosure, Chapter 13 may be able to stop foreclosure proceedings against your home by allowing you to catch up on missed mortgage payments over time.