What should i know about selling real estate while under a chapter 13 bankruptcy?

Answer by  patti (29325)

Because you are in bankruptcy, you had best discuss this matter with your attorney before doing anything. Selling real estate and profiting from it has a number of implications with regard to your bankruptcy filing. There are many factors to be considered with regard to your specific situation. You r attorney is the final word here.

Answer by  bricen (77)

When selling real estate under a chapter 13 bankruptcy, the most important thing to consider is the amount of equity you will be allowed to keep from your property. This varies from state to state. In some states, such as Texas, where you have very strong homestead protection laws, you are actually allowed to keep 100% of your equity!

Answer by  tamarawilhite (17883)

When you sell the real estate, the existing lien-holders collect the debt first from the sale income. If there is any money left over, it goes to your debtors.

Answer by  mannersandsuch (1796)

Bankruptcy is hard and complex set of laws. I would suggests that you consult a lawyer, there are many that have great rates available to you.

Answer by  rhonda515 (607)

You may have to have your sale approved before it can be finalized. The bankruptcy judge may decide that some or all of teh sales proceeds need to be used to pay off your creditors.