Chapter 13 bankruptcy places your Richmond Hill, GA, house under the control of the court. That means you can’t sell the property without permission from the trustee and the judge. In this blog post, you’ll learn whether you can sell your house while in Chapter 13 and why you should work with Home Buyers of Savannah to complete the process.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy results in a repayment plan that lasts three to five years. When you file, your house and other property enter the bankruptcy estate, and the trustee controls what happens to your property during repayment. The plan often stops foreclosure by giving you time to catch up on mortgage payments, but selling your house during this process becomes more complicated when your situation changes.
These rules protect creditors, which is why every step needs approval. Knowing how this structure works prepares you for the options that allow a sale to move forward.
Options for Selling Your Home While in Chapter 13 Bankruptcy
In order to answer the question, “Can I sell my house while in chapter 13?” you need to understand court review, trustee oversight, mortgage settlement, and updates to your plan.
Work With Your Attorney and Get Court Approval
Your attorney files a motion to sell that lists the price, buyer, and property details. Court approval must come before the sale can move forward. The judge reviews the motion to confirm that creditors receive fair treatment. Without approval, the sale cannot close. Once the judge signs the order, the process moves to the trustee’s review.
Secure Trustee Permission Before You Finalize the Sale
The trustee reviews the sale to confirm it matches the repayment plan. Trustee permission verifies that the process distributes the proceeds correctly. This review decides how much money goes to creditors. Approval keeps the required payments in place, and oversight prevents disputes that could delay closing.
Handle Your Mortgage Payoff and Update Your Bankruptcy Plan
A real estate sale requires your lender to receive full payment at closing. The mortgage payoff clears the debt tied to your house. Your attorney then amends the bankruptcy plan to reflect new living costs. The revised plan adjusts repayment amounts so the case stays in compliance.
Without these updates, the court may reject your bankruptcy. Completing this step ensures that payments continue without interruption. Once updated, the court approves the final steps that allow the sale to close.
Call Home Buyers of Savannah for a Fair Cash Offer While in Chapter 13 Bankruptcy
Home Buyers of Savannah buys houses directly from owners in Chapter 13 cases. Our team works with your attorney to follow every court requirement and move the sale forward. Selling to us avoids the delays that come with traditional buyers. A fair cash offer covers your mortgage payoff and supports an updated bankruptcy plan.
Still wondering whether you can sell your house while in Chapter 13? Call Home Buyers of Savannah at 912-513-8744 to receive a fair cash offer. If you want more information, check out our other blog post on selling during bankruptcy.
