Sometimes, especially during Chapter 13 bankruptcy, a person decides they would like to sell their house during their bankruptcy. The big question that they ask is: Am I allowed to sell my house during bankruptcy?
The answer to this question is yes, however, you must get Court approval before selling the house while in a Chapter 13.
Also, if you are considering selling property, other than your house, that is listed in your bankruptcy, it is very important that you discuss this with your attorney, as each case is different.
In order to sell your house, your attorney will need to file a Motion to Sell with the Court. The Motion to Sell lets the Court determine what happens to the proceeds from the sale of the property, makes sure that the terms, conditions and expenses of sale are reasonable.
Before your attorney can file the motion with the Court, you will need to put the house on the market. Once you have received and accepted an offer, you must contact your attorney’s office and provide them with a copy of the contract between you and the buyer, so they can file a Motion to Sell with the Court. It typically takes about 30 days from the date the Motion is filed until permission is granted.
Contact your bankruptcy attorney for more specific advice on selling property during bankruptcy.