Choosing to take the step of filing for bankruptcy can be a frightening experience for some, and yet it is an effective way for an individual to fight off their debt. While a person is under bankruptcy there can be a lot of questions or concerns as to what they are allowed to do, and what they must seek permission to do from the bankruptcy court. A common concern for those under bankruptcy trying to sell a home is whether or not they must seek permission from the court before they list their house as ready to sell while their case is pending.
Under any Chapter of bankruptcy an individual must get permission from the court before they make the decision to sell their home, even if they are doing so to save money and pay back their creditors. In order to sell a home they must receive permission through a court order. The debtor must then submit their intention to sell form along with a copy of the sales contracts and the estimated value of the home, proof of the value of the home and established the listing price. These documents are not the only requirements, the debtor must also show where the earnings of the property are going to go. This would include the realtors that are getting paid, along with any other specific destinations for the money.
These approvals from the court may take some time, so if you are considering this option contact your bankruptcy lawyer for help on the best plan of action to take. Don’t risk trying to sell a property without the courts approval, while there have been times where a court will approve later on it is not worth having to pay extra fines or mess up the actual sale of the home. Choosing to sell your property while under bankruptcy may be a smart move to take as a means of paying off the creditors, if you are able to find a smaller and more affordable place to live.
For those who are under Chapter 13 bankruptcy, known as the debt consolidation, you are still required to pay back creditors and therefore a large sale from a home could be very beneficial to get started on those payments. If you are considering filing for bankruptcy, or are currently under bankruptcy and want to sell your home, contact a trusted bankruptcy attorney who can walk you through the process. At Malaise Law Firm we have years of experience helping our clients in many different debt conditions, call today to discuss your specific needs, we want to help you in this process!