Property owners going through a wage earner bankruptcy repayment plan have plenty of reasons to downsize while the plan is ongoing. So, can you sell a house while in Chapter 13 bankruptcy? You can, but it requires careful coordination between your bankruptcy attorney, the trustee, and the court.
Wise Property Buyers can help if you’re in a bankruptcy case and have been searching for a way to “sell my house fast in Detroit.”
Why Selling Your Home During Chapter 13 Requires Extra Steps
When you file for Chapter 13 bankruptcy protection, your property becomes part of the bankruptcy estate. That means debtors must seek court approval for house sales before moving forward. The process ensures the plan remains viable and protects your creditors.
If you’re considering selling a home during Chapter 13, your attorney will typically file a motion to sell with the bankruptcy court, which includes the buyer’s information, sale price, and how the proceeds will be used. The judge and trustee then review everything to confirm that the sale aligns with your repayment plan.
This process might sound intimidating, but with the right buyer and a clear plan, it’s entirely manageable.
How Court Approval Works When Selling Property in Bankruptcy
Before you can move forward, your bankruptcy trustee must consent to the sale. The trustee’s role is to protect the interests of unsecured creditors, and they must verify that your proposal makes sense under your repayment plan.
Once the trustee signs off, the motion goes to the judge for review. In some cases, a hearing in open court is required. If the judge approves your motion, you can move forward according to the terms of the court order.
Every case differs slightly, so it’s important to work closely with your attorney to avoid delays or denials.
Understanding How Sale Proceeds Affect Your Repayment Plan
Once the sale goes through, your trustee will determine how the proceeds are applied. Depending on your equity and exemptions, some of the money may go toward paying creditors or adjusting your payment plan. If your equity falls within Michigan’s homestead exemption, you may be able to keep part of the proceeds.
How Cash Home Buyers Simplify the Process
Traditional sales can drag out the approval process and risk falling through. Cash buyers like Wise Property Buyers offer a smoother path by purchasing properties as-is, without repairs, commissions, or waiting on mortgage approvals. Our team regularly works with attorneys and trustees to ensure full compliance with the rules for disposing of real estate in bankruptcy cases.
Sell Your Michigan Home Confidently With Wise Property Buyers
So, can you sell a house while in Chapter 13 bankruptcy? Yes, and you don’t have to navigate this process alone. Wise Property Buyers specializes in helping homeowners complete legal home sales during bankruptcy proceedings. We’ll coordinate with your attorney, provide a fair cash offer, and handle each step of the closing process following court approval.
Call Wise Property Buyers today at (313) 513-8824 or contact us online to discuss your situation and learn how we can help you sell quickly and responsibly.