Proceeds From Selling Your House Will Be Used to Pay Your Creditors. The trustee will then disburse the proceeds to the creditors. If the sale of your home allows you to pay off your repayment plan, you could have the bankruptcy discharged shortly after the sale.

Can you sell your home if you are in bankruptcy?

The short answer is: Yes, you can sell your house after a bankruptcy discharge. However, the long answer to this question is more complex, and it will require the help of your reliable, experienced attorney. Discharged bankruptcy doesn’t necessarily mean that your case is finalized and closed.

Can you sell your house in a chapter 13 bankruptcy?

There is a great deal of paperwork involved in selling a home while you’re in Chapter 13, and your attorney needs time to inform your bankruptcy trustee and put the documentation together. In addition, you should inform your real estate agent and the prospective buyer that you are in Chapter 13.

What happens to your property when you file bankruptcy?

You need to realize is that when you file your bankruptcy case, all property that you own becomes part of the bankruptcy estate. This means that, in the absence of court permission, you’re not allowed to sell, transfer, or dispose of any property.

Do you need an attorney to sell your house?

Walker & Walker Law Offices does not charge extra for this, although some other lawyers do. If the house isn’t your primary residence or if it has more than $420,000 in equity, then the attorney must ask the bankruptcy court for permission to sell it.

What should I do if I want to sell my house?

The first step if you are thinking of selling your house is to figure out if you can sell the property for enough to pay off the mortgages. You also need to know if you have any equity in the house and you need to figure out if the equity is exempt.