Filing for bankruptcy is one of the most difficult financial decisions a person can make. It often comes with feelings of uncertainty, frustration, and anxiety about the future—especially when you own real estate. If you’re a homeowner going through bankruptcy, you might be wondering: Can I sell my home? Do I need court approval? What are my options?
At Howell Properties LLC, we’ve worked with dozens of Ohio residents navigating bankruptcy who needed to sell their homes quickly and without complications. In this article, we’ll walk you through how bankruptcy affects homeownership, what your options are, and how we can help you move forward with clarity and confidence.
Understanding Bankruptcy and Real Estate
Bankruptcy is a legal process that helps individuals and businesses eliminate or repay debts under the protection of the federal court. When you file, a court assigns a trustee to oversee your case and manage your assets—including your home.
There are two common types of personal bankruptcy:
- Chapter 7 (Liquidation Bankruptcy):
Your non-exempt assets may be sold to pay off creditors. In some cases, this includes your home. - Chapter 13 (Reorganization Bankruptcy):
You keep your assets and follow a 3–5 year repayment plan approved by the court.
If your property is underwater or unaffordable, selling it may be part of your financial recovery plan.
Can You Sell Your Home While in Bankruptcy?
Yes, you can sell your home during bankruptcy—but you must get court approval. The trustee and the judge must agree that the sale is in the best interest of your creditors. The process can be complex, but it is possible with the right guidance.
Here’s how it works depending on your filing type:
✅ Chapter 7:
If the home is not protected under exemption laws, the trustee may sell the home to pay off your debts. In some cases, you may be allowed to sell it yourself, with approval.
✅ Chapter 13:
You may sell your home as long as the trustee approves the sale and the proceeds go toward your repayment plan or satisfy debts.
Why Sell During Bankruptcy?
Selling a home during bankruptcy isn’t just about avoiding foreclosure—it’s about creating a fresh financial start. Here are a few reasons homeowners choose to sell:
- Avoid foreclosure and protect your credit from further damage
- Eliminate a burdensome mortgage payment
- Settle debts with proceeds from the sale
- Move forward faster with your bankruptcy plan
- Simplify your life during a stressful time
Challenges of Selling a Home During Bankruptcy
Selling a house during bankruptcy is not the same as a traditional home sale. Here are some of the biggest challenges:
- Court Oversight:
You can’t sell without trustee and court approval. - Delays:
The legal process can slow down the sale timeline. - Home Condition:
Most homes sold in bankruptcy are in poor condition or behind on payments, making traditional sales difficult. - Limited Buyer Pool:
Many buyers shy away from court-involved sales.
That’s where working with an experienced home buyer like Howell Properties LLC becomes your best option.
Your Options for Selling a Home in Bankruptcy
If you’re facing bankruptcy and need to sell, here are your main options:
1. List with a Real Estate Agent
This may seem like the obvious choice, but it comes with challenges:
- Requires court approval and coordination with the trustee
- Often requires repairs and showings
- Can take 30–90 days to close
- Realtor fees reduce your proceeds
2. Sell Directly to a Cash Buyer (Like Howell Properties)
This is often the fastest and easiest option. We buy homes as-is and work directly with you and your bankruptcy attorney to make sure the sale meets court requirements.
Why Choose Howell Properties LLC?
We specialize in buying homes in difficult situations—including those involved in bankruptcy. Here’s what you can expect when you work with us:
- ✅ We Work With Your Trustee and Attorney
We coordinate directly to keep the process smooth and legally compliant. - ✅ Sell As-Is—No Repairs or Cleaning Needed
We’ll buy the home in any condition, even if it’s outdated or damaged. - ✅ No Hidden Fees or Commissions
You keep more of the sale proceeds. - ✅ Fast Closings
We move as quickly as the court allows, often within 2–3 weeks. - ✅ Confidential and Compassionate
We treat every homeowner with dignity and respect.
Real-Life Example
We recently helped a homeowner in Columbus who had fallen behind on mortgage payments due to a job loss and filed Chapter 13 bankruptcy. They needed to sell the home to satisfy their repayment plan but were overwhelmed by the legal steps. We worked directly with their bankruptcy attorney and trustee, got the sale approved by the court, and closed in just 17 days—allowing them to stay on track and breathe again.
Key Steps to Selling During Bankruptcy
Here’s how the process usually works:
- Speak With Your Bankruptcy Attorney
Ensure that selling your home is part of your legal strategy. - Get Approval From the Trustee and Court
You (or your attorney) will need to submit a request to sell. - Accept a Cash Offer
We provide a straightforward, fair-market cash offer—no games. - File Sale Motion With the Court
The trustee submits our offer for approval. - Close the Sale
Once approved, we close quickly and pay directly through the proper legal channels.
Can You Keep Any Money From the Sale?
This depends on a few factors:
- Your state exemption laws (Ohio has a homestead exemption)
- Your bankruptcy chapter (7 vs 13)
- Your total equity in the home after paying off liens and mortgages
In some cases, homeowners are allowed to keep a portion of the proceeds.
Common Questions
❓ Will selling the home stop foreclosure?
Yes, if the sale closes before the foreclosure is finalized, it can stop the process.
❓ What if I owe more than the home is worth?
We can still make an offer and help you explore short sale options approved by the court.
❓ Will I need to fix anything?
No. We buy homes completely as-is—even with damage or code violations.
❓ What happens after the sale?
Your bankruptcy case continues as planned, often with less debt and more flexibility.
Take the First Step Toward Relief
If you’re in bankruptcy and feeling overwhelmed by the idea of selling your home, you’re not alone—and you’re not stuck. At Howell Properties LLC, we understand the legal and emotional complexities that come with financial hardship. We’re here to help you move forward, not just with a home sale, but with peace of mind.
Let Us Help You Start Fresh
Selling a home during bankruptcy doesn’t have to be scary, complicated, or drawn-out. Howell Properties LLC offers a fast, fair, and legal path to get your home sold and your financial future back on track.
📞 Call us today at (419) 273-7355
💻 Or request your free cash offer at howellpropertiesllc.com
We’ll work with your bankruptcy attorney and guide you every step of the way. It’s time to move forward—with confidence.