Can You Sell Your House During Bankruptcy in Dallas?

How to Sell Your House During Bankruptcy in Dallas

Are you able to sell your house if you’re in the middle of bankruptcy? The answer, it depends! If you’re going through financial struggles and file for bankruptcy, you only have to pull the debts you’re behind on into the bankruptcy. For obvious reasons, if you’re current on something, you wouldn’t need to bring that into bankruptcy unless your attorney advises differently. But in most cases, when someone is needing to file bankruptcy because of debt issues, the house payment is one of the main issues.

In January 2023 there was a 19% increase in bankruptcy filings over the previous year which means there are several people going through hard times right now. Things happen and you’re doing the right thing by researching your options. But just because you’re going through hard times and file bankruptcy, it’s not the cure-all. You will still need to go through the process of bankruptcy to catch up on your past due items or sell off what you need to and walk away. Based on your circumstances, one of those options might be the better option for you.

Just to touch on it, there are two more common types of bankruptcies for homeowners to file for. One is Chapter 13 bankruptcy which means you are going in with the hopes to restructure your debt to help you catch back up. If you are able to make it through this process, the end result/goal is to keep your home as well as other additional items brought into the bankruptcy. Chapter 7 bankruptcy is more for liquidation. Meaning you are taking specific debts into bankruptcy with the goal to sell your house as well as other items brought into the filing. Most people don’t know that even if they’re behind on their mortgage payment and want to sell to get out from under it, they don’t have to go through bankruptcy to liquidate. You can sell your home on your own.

But if you’re here, it’s likely you’re already in bankruptcy and are now wondering if you can still sell while you’re in the middle of it. The rules for the process are going to be different for the type of bankruptcy you file under, but ultimately the answer is yes! So read on as we explore how to sell your house during bankruptcy in Dallas. This article is for informational purposes, not financial or legal advice.

Court Permission

If you’re currently in a chapter 7 bankruptcy, you’ll need to file a motion with the court for leave to sell real property or approval to sell your house during bankruptcy in Dallas. You will want to include the selling price, your plans for the proceeds, and the names of creditors holding liens on the property. This motion allows your creditors and any trustee to object to the court determining the disbursement of any funds. If you’re in chapter 13 bankruptcy then you will need to talk to your attorney about potentially moving to a different chapter and what that looks like or you can just simply dismiss yourself from bankruptcy. As long as you’re not actually in bankruptcy, you have the right to sell your home on your own terms.


In a traditional sale, you’ll need to add a contingency clause to the contract to sell your house during bankruptcy in Dallas, stating that the sale is contingent upon obtaining bankruptcy court permission. However, under chapter 7, the trustee may determine to sell the house if your home has high unprotected equity under your bankruptcy exemption. With the funds, the trustee pays any secured debts like the mortgage, provides you with the exempted amount you are entitled to, and then satisfies any unsecured creditors with a pro ratio share of any remaining funds.


You may wonder what happens to any proceeds after the mortgage is satisfied when you sell your house during bankruptcy in Dallas. This, of course, will depend on your homestead exemption if you have one. However, the proceeds will likely go towards paying any remaining unsecured creditors or paying for the bankruptcy case.

Planned Payments

Depending on your chapter, if you sell your house during bankruptcy in Dallas, you will need to modify your planned payments. Depending on the realized sale value, you may pay your plan off earlier as the proceeds go directly towards the bankruptcy.

Itemized Payoff Statement

To ensure no fees remain to surprise you after you sell your house during bankruptcy in Dallas, you should request an itemized payoff statement. Creditors don’t always get it right so you want to fact-check all statements to make sure there aren’t any unnecessary fees on the statements.

North Texas Cash For Homes

Don’t hesitate! One of the best ways to sell your house during bankruptcy in Dallas is to sell directly to the cash buyers at North Texas Cash For Homes. Our policy at North Texas Cash For Homes is full transparency through every step of the process because we want you to decide which sales method works best for your situation. To that end, a cash buyer from North Texas Cash For Homes will detail your expenditures and potential profits from a conventional listing with an agent, vs. our offer, which you’ll agree is fair. We also discuss time constraints as well. At North Texas Cash For Homes, we do this because we are your neighbors here in Dallas, we care about our community and the people in it, and we want you to feel good about working with us long after the deal is closed. 

The seasoned pros at North Texas Cash For Homes have experience with sellers going through bankruptcy and have the solution you seek, providing you with a guaranteed closing date, charging no commissions or closing costs with no unpleasant surprises. If you’d like to avoid the work and out-of-pocket costs of prepping your house to list on the Dallas real estate market, a direct sale to the cash buyers at North Texas Cash For Homes is the solution. The cash buyers at North Texas Cash For Homes never charge commissions, and there are no hidden fees. So you can put your wallet away and relax; you won’t even need to worry about showings when you make a direct sale to us. For a no-hassle sale of your home during bankruptcy: a cash buyer from North Texas Cash For Homes will buy your house directly, as-is, for cash. Call North Texas Cash For Homes at 214-761-3150.

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