Selling Your House During Bankruptcy in Texas: What You Need to Know 🏠

Life doesn’t always go as planned. When debt piles up and the pressure grows, bankruptcy can feel like your only way forward 😟. If you’re wondering whether selling your house during bankruptcy in Texas is even possible—the short answer is yes. But there are a few important steps to follow.

If foreclosure is also looming, don’t miss our plainspoken guide to What Happens When You Sell a House in Foreclosure—it might help you sort through some tough decisions.

Bankruptcy is tough—but selling your house doesn’t have to be. If you want someone who’ll explain things without pressure, you can always contact us 💬.

Court Approval Comes First 📑

When you’re in bankruptcy, your house becomes part of your bankruptcy estate 📂. That means you’ll need court permission to sell it.

To do that, your attorney files a motion that includes the sale price, your plans for the money, and any creditors who hold liens. The court gives your creditors a chance to respond. Once approval is granted, you’re cleared to move forward ✅.

Add a Contingency Clause to the Sale Contract ✍️

If you decide to sell the traditional way, you’ll need a clause in the contract stating the sale is contingent on bankruptcy court approval. This protects both you and the buyer 🛑.

In Chapter 13, you usually keep control of the sale—but the proceeds go toward your repayment plan 🔁. Sometimes, it’s enough to pay off the plan early.

Under Chapter 7, if your house has unprotected equity, the trustee might take over the sale. They’ll pay off the mortgage, give you your exempt share 🏡, and use the rest to pay creditors 💳.

If you’re dealing with both bankruptcy and a home that’s worth less than you owe, this post on What to Do When You Owe More than Your House is Worth in Texas may help you make sense of your options.

For more basics about how all this works, head to our home page 🖥️.

What Happens to the Money From the Sale? 💰

The outcome depends on your bankruptcy chapter.

In Chapter 7, the trustee pays your mortgage first. Then comes your exempt share. After that, any remaining funds go toward unsecured creditors—like medical or credit card debt 📉.

With Chapter 13, most or all of the sale proceeds go straight into your court-approved plan 📆. It might shorten the plan’s timeline or even close it out completely.

In either case, selling your house during bankruptcy in Texas can give you a clean break and a fresh financial start ✨.

If foreclosure is part of your picture too, Grandma explains the options in How to Stop the Foreclosure Process in Texas. It’s clear and practical, like everything Grandma writes.

Modify Your Plan and Ask for a Payoff Statement 📝

Selling while in Chapter 13 usually means modifying your repayment plan. You’ll explain the sale and how the money will affect your ability to keep up—or pay off early 💼.

Also, before you close, ask your mortgage company for an itemized payoff statement. This ensures you’re not surprised by any fees or interest charges at the last minute 😅.

At Grandma House Buyer, we walk you through these steps like we’ve done it a hundred times—because we have. And if you’re upside-down on your loan, these 4 practical steps for upside-down mortgages in Texas could help you plan ahead.

Got questions now? Contact us 🧓🏽📱—no pressure, just answers.

Grandma’s Way: A Simple, Fair Sale 🤝

Let’s be honest: nobody wants to show a house during bankruptcy. That’s why Grandma makes it simple.

At Grandma House Buyer, we work with Texans facing tough times 🌦️. We buy houses directly with cash, no agents or commissions, and no cleaning or repairs required. Here’s what you can expect:

• A cash offer with no obligation 💵
• No showings, no repairs, no prep 🧽❌
• No commissions or closing costs 🚫💰
• Help with court paperwork 🗂️
• A guaranteed closing date that fits your timeline 📅

Whether you’re in Chapter 7 or Chapter 13, we’ll help you navigate the details—and treat you with the kindness you deserve 🌻.

A Fresh Start Starts With a Conversation 🌷

You don’t have to be stuck. Selling your house during bankruptcy in Texas is possible—and Grandma can make it simpler.

If you’re ready for honest answers and real options, contact us or text us at (346) 598-2424 📲. We’re here when you need us.

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