“How to sell my house in Bankruptcy”
A question we are often asked is, “Can I sell my house after I have filed bankruptcy?”
The good news is you can sell your house if you are in bankruptcy! There are just some important factors that you should be aware of for it to be successful.
When you file for bankruptcy, the Bankruptcy Court will create an estate of all your assets and put a trustee in charge of controlling those assets. In order to get the ability to sell your property, you must have permission from the trustee via a “Motion to Sell”.
We buy houses in bankruptcy all the time; the best way to get this Motion to sell is to:
- Inform everyone involved. Tell your lawyer about your intentions to sell so that they can start preparing paperwork and inform your trustee.
- Time is of the essence; your attorney needs at least 30 days notice to give the trustee time to accept the sale.
- Once the Motion to Sell is granted, you are able to sell your house.
It is our recommendation that if you are on the verge of filing bankruptcy and selling your house that you sell your house before you enter into a bankruptcy. This way, the court is not able to put stipulations as to what you can and cant do, and you can always file for bankruptcy after. However, if you have already filed bankruptcy, its not too late, you can still sell your house.