Selling Your House in a Chapter 13

Bankruptcy and your house Selling your home during a Chapter 13 case is not as uncommon as you might think. In fact, many debtors find themselves forced into this action in an attempt to settle their debts and provide the Trustee with the funds required to pay off debts. What should you know about selling your home during a Chapter 13 filing? Can it even be done?

First, you can certainly sell your home during this time. However, it will require that you take some special steps. The first order of business will be to let your lawyer know that you intend to sell your home.

Your attorney will let you know if there are any special rules regarding retaining a real estate agent. In addition, you need to alert any realtor you consider of the fact that you are in bankruptcy. Often, the realtor will have to change their offer and acceptance forms for the sale.

When you attempt to sell your home, even if you will be selling it yourself, you need to make any potential buyer aware of the fact that you are in bankruptcy.

This is vital, as buyers tend to become very nervous in these instances. In addition, it’s important because no sale can be closed until the bankruptcy judge authorizes it.

If you receive an offer that you wish to accept, you will have to let your bankruptcy attorney know about it. You must also tell the buyer that you cannot fully accept the offer until it has been approved by the court. Finally, your attorney will need to file a motion asking the court to authorize the sale of your home at this time.

You should also be aware that some or even all of the money from the sale of your home will most likely go to the trustee of your case for debt payment. During this time, it is essential that you discuss your future plans with your attorney.

For instance, if you require some or even all of the proceeds from the sale of your home to make a down payment on a new home, or to pay for your move, your attorney needs to know about this so he or she can represent you better.

Related links

Selling your home during Chapter 13 is possible. However, you will have to follow the steps outlined above, as well as the advice of your attorney for the best outcome.

Share