Can I Sell My House During Chapter 13 Bankruptcy in Missouri?

Plans that looked workable at filing do not always stay that way. A job change, a repair bill or a payment that keeps climbing can make selling the better path. The sale itself works like any other. The approval around it does not.

Why the Court Has to Approve

Filing creates a bankruptcy estate that includes your house. Under 11 U.S.C. 1303, a Chapter 13 debtor holds the trustee's power to sell property under section 363(b), which calls for notice and a hearing for sales outside the ordinary course. The federal courts describe how the plan and trustee work. Title companies generally want the signed order before they close.

How a Sale Usually Moves

1. Get a written offer with a closing date that leaves room for the motion.
2. Your bankruptcy attorney files a motion to sell with the contract attached.
3. The trustee and creditors receive notice and can object.
4. The judge signs an order approving the sale and saying how proceeds are handled.
5. The title company closes, pays the mortgage and liens, and sends the rest as the order directs.

Chapter 7 Is Different

In Chapter 7, a trustee can take control of nonexempt property and sell it. If you have not filed yet and are thinking about it, talk to a bankruptcy attorney before you sign any sale contract. Court information is at the Eastern District of Missouri bankruptcy court site.

Where We Fit

We can write the offer your motion needs, hold the price while the court reviews it, and close at a title company once the order is entered. We do not give bankruptcy advice. Your attorney leads.

Common Questions

Can I sell my house without telling my Chapter 13 trustee?

No. Selling estate property during an open case without court approval can put the case at risk. Your attorney files the motion.

Who gets the money from a house sale in Chapter 13?

The court order controls it. The mortgage and liens are paid at closing, and the order says whether the rest goes to the trustee, to you or both.