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

Man standing in a cozy Texas living room during bankruptcy, considering options to sell his house with Grandma House Buyer
Selling your house during bankruptcy in Texas? Grandma House Buyer offers a stress-free solution—even in tough times.

Life doesn’t always go as planned. When debt starts piling up and options feel limited, bankruptcy can seem like the only path forward 😟. If you’re a Texas homeowner wondering whether selling your house during bankruptcy in Texas is possible—the answer is yes. But there are a few steps you’ll need to follow.

If foreclosure is also on the horizon, we’ve put together a helpful guide on selling a house in foreclosure. It may answer more of your questions.

Bankruptcy is hard—but selling your house doesn’t have to be. If you’d like someone to walk you through your options with care and clarity, feel free to contact us 💬.

Court Approval Comes First 📑

When you’re in bankruptcy, your home becomes part of your bankruptcy estate 📂. That means you can’t sell it without permission from the court.

To get that permission, your attorney will file a motion with the court that includes details like the sale price, who holds liens against the property, and how you plan to use the proceeds. Creditors will have a chance to object, but once the court approves the sale, you’re free to move ahead ✅.

Add a Contingency Clause to the Sale Contract ✍️

When selling your house during bankruptcy in Texas, you’ll want to include a special clause in the contract making the sale contingent on court approval. It protects you and the buyer in case something unexpected comes up 🛑.

In Chapter 13, where you’re on a payment plan, you’ll usually be allowed to sell the home yourself—so long as the court agrees. The proceeds often go toward your repayment plan, and the plan may need to be adjusted 🔁.

Under Chapter 7, the court-appointed trustee may take over the sale if your home has more equity than you’re allowed to keep under the Texas homestead exemption 🏡. The trustee pays off your mortgage, gives you any exempt portion of the equity, and then divides the rest among your creditors 💳.

Want a better understanding of the bankruptcy process in Texas? Start with our home page 🖥️.

What Happens to the Money From the Sale? 💰

Once the house sells, what happens to the money depends on which type of bankruptcy you filed.

In a Chapter 7 case, your mortgage is paid off first. Then, if any equity remains, you’re allowed to keep what’s protected by your homestead exemption. After that, the trustee uses the rest to pay your unsecured creditors like credit cards or medical bills 📉.

If you’re in Chapter 13, most or all of the proceeds will be used to pay off your court-approved repayment plan 📆. That might mean a faster exit from bankruptcy—or at least one that gives you breathing room.

Selling your house during bankruptcy in Texas isn’t always easy, but it can be a smart step toward getting out of debt and regaining control ✨.

Modify Your Repayment Plan and Request a Payoff Statement 📝

If you’re under Chapter 13, selling your house usually means you’ll need to modify your payment plan. You’ll submit a request to the court explaining how the sale affects your ability to continue making payments—or eliminate them altogether 💼.

You should also request an itemized payoff statement from your mortgage lender. This will show exactly how much you owe, including interest and any fees, so you aren’t surprised at closing 😅.

At Grandma House Buyer, we guide you through these small (but important) steps. If you’d like a no-pressure conversation about what to expect, contact us 🧓🏽📱.

Grandma’s Way: A Simple, Fair Sale 🤝

Selling a house during bankruptcy isn’t easy. But that’s why Grandma’s here.

At Grandma House Buyer, we work with folks all across Texas who are going through tough financial seasons 🌦️. We help you skip the stress of listings, repairs, showings, and waiting. Here’s how we keep it simple:

  • A cash offer with no obligation 💵
  • No showings, no repairs, no prep work 🧽❌
  • No commissions and no closing costs 🚫💰
  • Help with timelines, court approval, and paperwork 🗂️
  • A guaranteed closing date that works for you 📅

We’ve helped people in both Chapter 7 and Chapter 13 find their footing again. And we’re happy to do the same for you 🌻.

A Fresh Start Starts With a Conversation 🌷

You deserve a solution that brings relief—not more red tape. Selling your house during bankruptcy in Texas is possible, and Grandma is here to make it simpler.

If you’re ready to explore a no-hassle sale, or just want to understand your options, contact us or text us at (346) 598-2424 📲. We’re here when you need us.

hat of grandma who buys houses in Houston TX

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