Your attorney goes first, not the buyer
Bankruptcy can put legal limits on your house and on any money from selling it. Before you list, sign a purchase agreement, hand over a deed, pay a favorite creditor or spend sale money, tell your bankruptcy attorney what you are planning. If a case is already open, ask what notice, trustee participation, lender consent, plan change or court order is required.
Exemptions and equity need a current calculation
Indiana exemption law is in Indiana Code Title 34. Do not plan a filing or a sale around an undated dollar amount from a marketing page. Your attorney should confirm the current figure, whether it applies to how you own the house, and how the liens and sale costs affect any nonexempt value.
Questions to ask your Indiana bankruptcy attorney
- Is the house property of the bankruptcy estate, exempt or abandoned?
- Who has authority to market it and sign a contract?
- Does the trustee, a creditor, the lender or the court need notice or have to approve?
- Is the proposed price and marketing process adequate for this case?
- How will the mortgage, taxes, liens, costs, exemptions and remaining proceeds be handled?
- Can I use any of the proceeds, and if so, when and for what?
What Roger does, and what happens next
Roger reviews the house, nearby sales, its condition, ownership and any title concerns, then prepares a written as-is offer. The offer removes the buyer-financing and inspection contingencies. It is not a safe harbor, and it does not guarantee trustee consent, court authorization, lien release, exemption treatment or a closing.
If your attorney says the sale can proceed, the title company handles title, payoffs and signatures. The settlement statement shows the price, costs, payoffs, taxes, prorations and the estimated net. Mortgage Forfeiture charges no company fee or agent commission; mortgages, liens, taxes and any seller-assigned costs can still reduce proceeds. A closing date is proposed once those requirements, and any court deadlines, are understood.
When a direct sale is not the right fit
If your attorney advises keeping the house, or the trustee intends to sell it through the estate, a private buyer is not the path. If the house is in good shape and the court allows time, a listing may net more. The written offer is there to compare, not to pressure you.
Frequently asked questions
Sometimes. In Chapter 7 the house may be property of the bankruptcy estate, and the trustee controls whether it is sold. Your attorney can tell you whether it is exempt, abandoned or part of the estate.
Often, with court approval and sometimes a plan modification. Proceeds may have to go toward the plan. Ask your attorney what the Southern District of Indiana requires in your case.
It depends on your exemptions, the liens and the chapter. Nonexempt proceeds may go to creditors. Do not spend anything until your attorney confirms what you may keep.
No one can promise that. A written offer with no financing contingency gives the court a concrete proposal to review, but the court, trustee and lender work on their own schedules.
Official starting points
- U.S. Courts: Chapter 7 Bankruptcy Basics
- U.S. Courts: Chapter 13 Bankruptcy Basics
- U.S. Bankruptcy Court, Southern District of Indiana
Related guides
- Selling a house before or during bankruptcy: the full checklist
- Behind on mortgage payments in Indiana
- Selling a house in foreclosure in Indiana
- We buy houses in Jeffersonville and Southern Indiana
General information only; not legal, tax, credit or financial advice. Ask qualified Indiana bankruptcy counsel about the facts and current law in your case.