If you own a home when you file for bankruptcy, it becomes part of the bankruptcy estate—the property or assets you legally own at the time of filing. In October of 2022, there was a notable twenty-seven percent increase in Chapter 13 bankruptcy filings compared to the previous year. When combined with a seven percent overall rise in bankruptcy cases across all chapters, the data strongly parallels the inflation spike during that time. These numbers highlight just how many homeowners are grappling with unmanageable debt. Often, life circumstances like medical bills, job loss, or rising living expenses force people into difficult financial positions, leaving them with few options other than bankruptcy. One benefit, however, is that filing for bankruptcy can temporarily halt foreclosure proceedings on a primary residence, offering much-needed breathing room.
For those whose secured and unsecured debts are under $2,750,000, Chapter 13 is an option, allowing a restructured repayment plan over time. In contrast, Chapter 7 is a liquidation process, where a trustee may sell your non-exempt assets to satisfy creditors. In either case, many homeowners wonder whether selling their home during bankruptcy is even possible—and the answer is yes, in most cases. The process varies depending on your bankruptcy type, but you can sell your home with proper legal steps. Let’s take a closer look at how to sell your house during bankruptcy in Las Vegas, NV. (Note: This article is for informational purposes only and does not constitute financial or legal advice.)
Court Permission
To sell your house during bankruptcy in Las Vegas, NV, you must first file a motion with the court requesting permission—this is known as a “Motion to Sell Property.” You’ll need to present the sale price, terms, your intended use of the proceeds, and the identities of any lienholders on the property. The court uses this information to determine if the sale is in the best interest of all parties involved. Your creditors and the bankruptcy trustee have the right to object, and a hearing may follow. Only after receiving court approval can you legally move forward with the sale.
Contingency
In traditional sales, contracts usually include a contingency clause—but when selling during bankruptcy in Las Vegas, NV, this becomes essential. The clause should state that the sale is subject to court approval, which protects both the buyer and seller from legal complications if the motion is denied. In a Chapter 7 case, the trustee may take over the sale if the home contains equity that exceeds the allowed exemption. After secured debts like the mortgage are paid off, the trustee will distribute remaining funds—first to cover exemption allowances and then proportionally among unsecured creditors.
Proceeds
After satisfying the mortgage, the next concern is what happens to any remaining funds. If you sell your house during bankruptcy in Las Vegas, NV, those proceeds are considered part of your bankruptcy estate. Depending on your state’s homestead exemption and the type of bankruptcy filed, you may retain a portion of the proceeds. In Chapter 7, however, it’s likely that most or all of the money will go toward paying off unsecured debts or administrative costs associated with your bankruptcy case. Chapter 13 allows more flexibility in how proceeds are handled, but they must still be disclosed to the court and trustee.
Planned Payments
Selling your home under Chapter 13 will affect your repayment plan. If the sale yields a profit, the court may require a modification of your existing plan. Depending on how much equity is realized, the proceeds might be applied to your outstanding balance, potentially shortening the duration of your plan or increasing the amount distributed to creditors. It’s important to work closely with your bankruptcy attorney and trustee when adjusting your payment schedule to reflect the change in your financial situation.
Itemized Payoff Statement
Before closing, request an itemized payoff statement from your mortgage lender to ensure you have a full understanding of any outstanding balances, late fees, or prepayment penalties. This statement helps you avoid unexpected charges and ensures all debts tied to the property are properly settled when you sell your house during bankruptcy in Las Vegas, NV. It’s a vital step for transparency and accuracy when preparing for court approval and final disbursements.
Fast Vegas Home Buyers
Don’t wait to take control of your financial future. With inventory still tight and interest rates expected to rise, now is the time to capitalize on your home’s market value. The simplest and fastest way to sell your house during bankruptcy in Las Vegas, NV is through a direct cash sale to Fast Vegas Home Buyers. Our mission at Fast Vegas Home Buyers is to offer complete transparency from start to finish. We’ll compare your expected profits from a traditional sale to our cash offer, giving you a clear picture of your best option. No pressure—just the facts—because we believe in empowering homeowners to make informed decisions.
The experienced professionals at Fast Vegas Home Buyers understand the sensitive nature of bankruptcy and offer discreet, tailored solutions for your situation. We’ll provide a guaranteed closing date and never charge commissions or closing costs. That means no surprise expenses, no open houses, and no delays. We buy homes as-is, allowing you to skip repairs, cleaning, or upgrades entirely. When you sell to Fast Vegas Home Buyers, we handle the hard work so you can focus on your fresh start. For a fast, fair, and stress-free sale during bankruptcy, call Fast Vegas Home Buyers at 702-745-7779..