Talk to your bankruptcy attorney before you talk to any buyer
Bankruptcy is federal law applied through your specific court case. Whether you can sell, what you can keep, and whether the court has to approve depend on the chapter, the filing date, your schedules and exemptions, your equity, the liens, a confirmed plan, local rules and any earlier transfers. A home buyer cannot answer those questions for you, and Roger will not try.
Tell your attorney about any planned listing, purchase agreement, deed, payoff or use of proceeds. A sale before filing has to be disclosed and can affect your exemptions or be reviewed later. A sale during the case may need the trustee, creditor or lender review, notice and court authorization.
Chapter 7 and Chapter 13 work differently
The U.S. Courts Chapter 7 guide explains that a trustee gathers and sells nonexempt assets. The Chapter 13 guide explains the court-approved repayment plan. Neither replaces advice about your house and your case.
State exemption law matters, but a dollar figure from a website is not enough. Eligibility, timing, marital status, how title is held, the liens, the federal or state exemption choice and later changes in the law all feed into it. Ask your attorney to calculate the current exemption and your estimated nonexempt equity as of your filing date.
What to bring your attorney
- Current mortgage, tax, judgment, HOA and other payoff figures
- The deed, the ownership history, any divorce or probate orders, and co-owner details
- A realistic value range and the proposed written purchase agreement
- Estimated transaction costs and the title company's draft settlement statement
- What you intend to do with any sale proceeds
What a direct offer does, and what it does not do
A direct offer from Roger removes the buyer-financing and inspection contingencies. It does not get you trustee consent, court authorization, creditor treatment, lien release, exemption protection or a closing. Price, marketing, disclosures, competing offers, claims and how proceeds are distributed can all still matter to the court.
Roger reviews the property and prepares a written offer for you and your lawyer to evaluate. He does not give bankruptcy advice, and he will not ask you to hide a transfer, go around the trustee or spend proceeds against legal advice or a court order.
What happens next if the sale is allowed
If your attorney and the required parties say the sale can proceed, the title company handles title, payoffs and signatures and prepares the settlement statement. It shows the price, each cost, payoffs, taxes, prorations and the estimated net. Mortgage Forfeiture charges no company fee or agent commission, but mortgages, liens, taxes and any costs the contract assigns to you can reduce the proceeds. The closing date is set once those requirements, and any court deadlines, are known.
Frequently asked questions
Sometimes. In Chapter 7 the house may be property of the bankruptcy estate, which means the trustee controls whether and how it is sold. Your attorney can tell you whether the house is exempt, abandoned or part of the estate, and what the trustee requires.
Often it is possible with court approval and, in many cases, a plan modification. The proceeds may have to go toward the plan. Ask your attorney what notice, motion and trustee involvement your court requires.
That is a legal and financial decision for you and your attorney. A pre-filing sale has to be disclosed, and selling for less than the house is worth, or paying selected creditors with the proceeds, can be reviewed later. Get advice before you sign anything.
Maybe some of it, maybe none. It depends on your exemptions, the chapter, the liens and what the court orders. Do not spend proceeds until your attorney confirms what you may keep.
Related guides
- Selling a house before or during bankruptcy: the full checklist
- Bankruptcy and a house sale in Indiana
- Bankruptcy and a house sale in Kentucky
- Behind on mortgage payments in Indiana
- We buy houses in Jeffersonville and Southern Indiana
- We buy houses in Louisville, KY
General information only; not legal, tax, credit or financial advice. Bankruptcy rules and exemptions change. Consult qualified counsel about your case.