Sell Your House During Bankruptcy
A house inside a bankruptcy is property of the estate, which means the sale runs through the trustee and, in most cases, the court. It is entirely doable -- it just has to be done in the right order.
A house inside a bankruptcy is an asset of the estate, which means the trustee -- not just you -- has a say in selling it. That extra step is routine, and courts approve these sales all the time when the numbers are fair and the paperwork is right.
What you are dealing with
Sound familiar?
- A Chapter 13 plan payment you can no longer sustain
- Needing court permission before you can sign anything
- Buyers who disappear when they hear the word bankruptcy
- Exemption limits you do not want to accidentally blow through
Questions sellers ask us first
- “Can I sell while my case is open?”
- “Who has to approve it?”
- “Do I keep any of the money?”
What you will need
- • Case number and your attorney's contact information
- • Schedules listing the property
- • Mortgage payoff
How it works in Tennessee
The timeline, the law, and your options
- Step 1
Motion to sell
Your attorney files a motion to sell the property free and clear, attaching the purchase contract.
- Step 2
Notice period
Creditors and the trustee get notice and an objection window, usually a few weeks.
- Step 3
Order and closing
Once the court enters the order, closing proceeds and liens are paid from the proceeds under the court's direction.
Legal notes
- • Selling estate property without court approval can jeopardize your case -- always route it through your attorney.
- • Tennessee's homestead exemption may shelter part of your equity; the amount depends on your circumstances.
Your options
- • Stay in the plan and keep making payments
- • Surrender the property in the plan
- • Sell with court approval and use the proceeds toward the plan
How we handle it
What selling to us looks like
We work directly with your bankruptcy attorney and the trustee, provide the contract and documentation the motion to sell requires, and hold our offer through the notice period. In Tennessee you may also be able to protect part of the proceeds through the homestead exemption -- your attorney will confirm the amount.
- We work directly with your bankruptcy attorney and provide the contract, proof of funds, and comparable support the motion needs.
- We hold our price through the notice and objection period instead of retrading once approval comes through.
- As-is means as-is: no repair demands that would require estate funds nobody has.
- We can close within days of the order clearing, so exemption and plan deadlines are not missed.
Our process
Three steps, no surprises
- 1
Tell us about the house
Call or send the address. We ask about condition, timing, and what is going on -- not for photographs or a clean house.
- 2
We walk the property
We look at it ourselves as a licensed contractor and price the repairs from real numbers instead of a padded guess.
- 3
Written offer, your date
You get a written, no-obligation offer, usually within 24 hours. You pick the closing date; we can close in as little as seven days.
Cash offer vs. listing
Compare the net, not the headline price
| Selling to Unique Construct | Traditional listing | |
|---|---|---|
| Repairs | None — we buy as-is | Seller pays before listing |
| Commissions | None | Typically 5–6% |
| Closing costs | We cover the standard costs | Often seller-paid |
| Showings | One visit from us | Open houses and lockbox |
| Contingencies | No financing, appraisal, or inspection outs | All three |
| Timeline | As little as 7 days | 45–60 days after a contract |
FAQ
Questions sellers ask
- Will you wait for the court?
- Yes. Court timelines are predictable and we build them into the closing date.
- Chapter 7 or Chapter 13 -- does it matter?
- It changes who signs and how proceeds are treated, but we buy in both.
- My case was dismissed and foreclosure restarted. Now what?
- Then speed matters. Contact us the same day and we will work the pre-foreclosure timeline.
- Chapter 7 or Chapter 13 -- does it change anything?
- Yes. In Chapter 7 the trustee controls the sale of non-exempt property. In Chapter 13 you usually sell with court permission and the proceeds flow through your plan.
- Can I sell before I file?
- You can, but timing matters a great deal to how the proceeds are treated. Talk with your bankruptcy attorney before you sign anything.
No obligation
Get a written offer
Tell us what is going on. We will be straight with you about whether selling is actually your best move.
Bankruptcy? Get your offer
No obligation, no fees, no repairs. Tell us about the property and you get a written cash offer within 24 hours of the walkthrough.
Related
Other situations we buy in
Bankruptcy by city
Bankruptcy? Call (865) 277-6808 and we will tell you where you stand.
Call (865) 277-6808This page is general information, not legal or financial advice. Every situation is different — call us and we'll walk through yours.