Filing for bankruptcy can feel like everything is on pause, but if you own a home, you may still have options. Many homeowners in West Virginia wonder whether they can sell their house during bankruptcy and use the sale to relieve financial pressure.
The short answer is: Yes, it’s often possible, but the rules depend on the type of bankruptcy you filed and whether the court (or trustee) needs to approve the sale.
Chapter 7 vs. Chapter 13: What’s the Difference?
The type of bankruptcy you file affects what happens to your home:
Chapter 7 (Liquidation)
In Chapter 7, the bankruptcy trustee may sell your house if there is non-exempt equity, meaning you have more equity than your state’s homestead exemption allows. If your equity is fully protected, you may be able to keep the home.
Chapter 13 (Repayment Plan)
In Chapter 13, you usually keep your property while you repay debts over 3–5 years, but you generally must get court approval before selling the home.
When Do Courts Allow the Sale?
Courts may allow the sale if it helps resolve debt and doesn’t harm creditors. Typically, you must show that the sale is reasonable, properly documented, and that the proceeds will be used fairly.
In Chapter 13, selling often requires filing a motion to sell and receiving permission from the judge.
How Selling for Cash Can Help Pay Off Debts
Selling your home for cash can be helpful during bankruptcy because it provides:
- Fast access to equity
- Fewer delays
- Less risk of the deal falling through
- No repair costs or agent commissions
- A simpler process when time is critical
For many homeowners, selling quickly can support debt repayment, or prevent foreclosure, especially when keeping the home no longer makes financial sense.
Timeline and What to Expect
While timelines vary, most sales during bankruptcy follow a general pattern:
- Confirm your bankruptcy chapter (7 or 13)
- Determine your equity and exemptions
- Get court/trustee approval if required
- Complete the sale and distribute proceeds properly
- Update your bankruptcy plan (if Chapter 13)
If your goal is speed and certainty, a cash buyer can often close faster than traditional listings (which may take weeks or months and require repairs or showings).
A helpful overview of how bankruptcy impacts selling property can always help!
We Can Help!
Selling a house during bankruptcy in West Virginia can be possible, but it’s important to do it the right way, especially when court approval and timelines are involved.
If you’re feeling overwhelmed and want a simple, no-repair, no-showings option, we can help. Our team works with homeowners in tough situations and can provide a fair, no-obligation cash offer, along with a flexible closing timeline that fits your needs.
When you’re ready, we’re ready, and we’ll make the process as easy as possible.