Selling Your Home While in Chapter 13 Bankruptcy
Can I Sell My Home While in Chapter 13 Bankruptcy?
There are many questions that those in Chapter 13 have and one of those is, “Can I sell my home while in bankruptcy?”
The answer is yes.
When in Chapter 13, individuals are able to pay back part of their debt and that means you are also able to keep your home because your attorneys have set-up a payment plan. Many times, homeowners decide to sell their home and if that is the route you choose then there are specific steps you have to take.
How to Sell Your Home in Chapter 13
Inform Your Attorney
No matter where you are in the process of your bankruptcy, you must inform all of those involved in the process. Your attorney is the first person you should contact since there will be a lot of paperwork involved.
Your attorney will need to contact your bankruptcy trustee and put all of the documents together. The real estate agent and potential buyer will also need to be informed that you are in Chapter 13. Often times your attorney will have to create a contract that states the sale relies on the approval of the trustee.
Do Not Wait to Sell
It is suggested that you give your attorney plenty of time to negotiate the sale with your trustee. On average, it takes anywhere from 30 to 50 days for your trustee to approve the plan. As soon as you decide you want to sell your home, talk to your attorney to get the ball rolling.
Getting Your Trustees Approval
One key piece of paperwork that will speed along your trustee's approval is the Motion to Sell. This piece of paperwork consists of the sale price of the home, its value, the appraisal, and the plans of fund distribution. If the document is agreeable to your trustee then they will push the sale of your home forward.
Sale of the Home
Once your home is sold then you will need to give your attorney a copy of the statement of sale. They will then forward the statement to the trustees. You will then need to make payments set during the selling phase.
Sacramento Bankruptcy Lawyer
One great reason to sell your home during bankruptcy is that it can help you pay off the rest of your debt. Sacramento residents in need of an attorney to help them navigate the sale of their home can look to Liviakis Law Firm, where we specialize in bankruptcy law.