If you’re facing tough financial times and bankruptcy appears to be your best option, you might wonder, “Can you sell your house during bankruptcy?” Many people in your position reach out to Homerun Home Solutions LLC, asking, “How can I sell my house fast?”
You can sell your home when you’re in the process of declaring bankruptcy, but there are strict rules.
Chapter 7 Bankruptcy: The Trustee Calls the Shots
When you declare Chapter 7 bankruptcy, you don’t get a repayment plan to cover your debts. Instead, the court assigns a Chapter 7 trustee who takes control of your nonexempt property, which is everything you own that isn’t household goods and clothing, some equity in your home and vehicle, and qualified retirement accounts. They then sell that property to pay creditors.
If you own a nonexempt home, the trustee will decide whether to sell it depending on how much equity it has after paying what you owe on it. Pennsylvania has a homestead exemption of $31,575. If, after calculating home equity, there is significantly more than that amount left, the trustee will sell the home to pay other obligations.
However, if there’s nothing left after the homestead exemption, the trustee might abandon the property, which makes it easier for you to sell it on your own. You may also be able to sell the house fast before the trustee steps in.
Chapter 13 Bankruptcy: You Keep More Control
Chapter 13 bankruptcy works differently. When you take this path, you can keep the property and repay your debts through a three- to five-year repayment plan. You pay up to the value of your nonexempt property,
Selling a house during this period can help pay off the plan sooner, but it almost always requires court approval. The court must review the sale terms, including how you’ll use the proceeds. Many use the sale to pay off the Chapter 13 plan early or move to a more affordable home.
Automatic Stays and Why Court Approval Matters
Filing a bankruptcy petition creates an automatic stay, temporarily stopping collection efforts while the court decides whether to approve it. At this stage, many homeowners ask, “Can you sell your house during bankruptcy without risking delays or complications?”
Ultimately, the trustee or the bankruptcy court wants to ensure that selling the home benefits creditors. They’ll look closely at your home equity, your bankruptcy petition, and whether the house is nonexempt property. If it’s nonexempt, you may be unable to sell, as its value determines your Chapter 13 repayment plan.
However, if the sale is approved, you can work with a buyer just like you would in a standard home sale.
Explore Home Selling Options With Homerun Home Solutions LLC
So, can you sell your house during bankruptcy and protect your financial future? Yes. With the proper steps and court approval, homeowners can complete a sale, even when dealing with an inherited property or other financial challenges.
If you’re ready to explore your options with zero pressure, Homerun Home Solutions LLC helps Pennsylvania homeowners sell fast during bankruptcy. Call (484) 246-4894 today for a fair cash offer.
