Short answer
Possibly, but not on your own. In bankruptcy, a trustee or the court usually has a say over property. In Chapter 7 a trustee may sell nonexempt property. In Chapter 13 you can keep property while paying a plan. Talk to your bankruptcy attorney before listing or signing any contract.
Chapter 7
The U.S. Courts explain that filing a petition automatically stays most collection actions. A case trustee is appointed to liquidate the debtor's nonexempt assets, selling property that is free of liens or worth more than the liens on it. Property exempt under federal or state law is protected and cannot be sold by the trustee. How much of a house is exempt often depends on state law and how much equity you have.
Discharge usually comes about 60 to 90 days after the date first set for the meeting of creditors. The meeting itself is held 21 to 40 days after filing.
Chapter 13
Chapter 13 lets you keep property while repaying debts over a plan of three or five years. The U.S. Courts say it can stop foreclosure and cure delinquent mortgage payments over time, but regular mortgage payments that come due after filing must still be made on time. The Chapter 13 trustee evaluates the case and distributes your payments to creditors.
The page we reviewed did not address selling property during a Chapter 13 case. Selling a house in the middle of a plan changes the plan, so you need your attorney and the court involved.
Do not sign first
Do not sign an agreement of sale before your bankruptcy attorney agrees. A sale outside the process can create problems with the trustee, the court and your creditors. Your attorney can tell you whether a sale needs approval, what the trustee will ask for and how proceeds must be handled.
Pennsylvania's Seller Disclosure Law exempts transfers by a trustee in bankruptcy. A sale by the debtor is a different case, so ask what applies.
Give your attorney the full picture: the deed, the mortgage statement, an estimate of value and any offers. They can say quickly whether a sale makes sense. Ask what documents the trustee will want from the title company at closing.
Why sell during bankruptcy
Sellers do it to pay debts, avoid foreclosure or move on. If the house has equity, a sale can be the best use of it. If it has little or none, the sale may not leave anything after payoffs and costs. A buyer who closes on a flexible date can help when approvals take time.
If you are in Chapter 13 and fall behind, a sale may also be part of how you resolve the arrears. That needs your attorney to coordinate with the trustee.
Where Kaizen fits
Kaizen Home Buyers buys as-is, makes a cash offer within 24 hours, charges no agent commission and can close on your date, typically 14 to 30 days. Involve your bankruptcy attorney before any contract is signed. Call 267-329-0084 to talk it through.