When you file for bankruptcy as a homeowner, your property becomes part of the bankruptcy estate—essentially all assets you own. In October 2022, chapter 13 bankruptcy filings surged by twenty-seven percent compared to the previous year. Overall bankruptcies increased by seven percent across all chapters, directly mirroring the seven percent inflation rate. Many homeowners find themselves drowning in debt through no fault of their own. As financial challenges due to unexpected circumstances diminish their ability to meet creditor obligations, bankruptcy often becomes their only recourse, which can effectively halt a foreclosure on their primary residence.
Chapter 13 eligibility applies to individuals with secured and unsecured debts under $2,750,000. In contrast, chapter 7 involves liquidation, where the trustee sells your assets to satisfy debts based on your income, total debt burden, and repayment capacity. Frequently, these distressed homeowners want to sell their properties to alleviate financial pressure but are uncertain whether this remains possible during active bankruptcy proceedings.
While specific procedures vary depending on your bankruptcy type and several individual factors influence the final outcome, the simplified answer for most homeowners is yes—you can sell. Continue reading as we explain how to sell your house during bankruptcy in Oregon. Please note that this information is provided for educational purposes only and should not be considered financial or legal advice.
Court Permission
To sell your house during bankruptcy in Oregon, you’ll need to file a court motion for leave to sell real property. This motion should include the proposed selling price, your intentions for the proceeds, and names of creditors with liens on the property. This filing allows your creditors and the trustee to raise objections, with the court ultimately determining how funds will be distributed.
Contingency
In traditional real estate transactions during bankruptcy in Oregon, you must include a contingency clause stating that the sale depends on obtaining bankruptcy court approval. Under chapter 7, however, the trustee may decide to sell your home if it contains substantial equity beyond your bankruptcy exemption. From the sale proceeds, the trustee first pays secured debts like your mortgage, provides you with your exempted amount, then distributes any remaining funds proportionally among unsecured creditors.
Proceeds
You might wonder about the fate of proceeds remaining after satisfying your mortgage when selling your house during bankruptcy in Oregon. The outcome largely depends on your homestead exemption. Typically, any remaining funds will be directed toward paying unsecured creditors or covering bankruptcy case expenses.
Planned Payments
If you’re under chapter 13 and sell your house during bankruptcy in Oregon, you’ll need to modify your repayment plan. Depending on the final sale value, you might complete your plan earlier than anticipated, as proceeds typically flow directly into your bankruptcy settlement.
Itemized Payoff Statement
To avoid unexpected charges after selling your house during bankruptcy in Oregon, always request a detailed itemized payoff statement from all involved parties.
Real Estate Advisors
Don’t delay! With housing inventory remaining tight and interest rates projected to rise, now is the optimal time to capitalize on your property’s value. The most straightforward approach to sell your house during bankruptcy in Oregon is through a direct sale to the cash investors at Real Estate Advisors. At Real Estate Advisors, we prioritize complete transparency throughout every transaction stage because we believe you should choose the sales method that best fits your circumstances. Our cash investors will clearly outline your potential expenses and profits from both traditional agent listings and our direct offer, which you’ll recognize as equitable. We operate this way because we’re your neighbors here in Oregon—we genuinely care about our community and its residents, and we want you to feel confident in your decision to work with us long after closing.
The experienced professionals at Real Estate Advisors have helped numerous sellers navigate bankruptcy and offer the solution you’re looking for—providing guaranteed closing dates with no commissions, closing costs, or unpleasant surprises. If you prefer to avoid the hassle and expenses of preparing your house for the Oregon real estate market, a direct sale to Real Estate Advisors‘s cash investors is your answer. Our investors never charge commissions, and we have no hidden fees. You can relax knowing that you won’t even need to accommodate showings when you sell directly to a Real Estate Advisors cash investor. For a stress-free sale during bankruptcy: our investors will purchase your home directly, as-is, for cash. Call Real Estate Advisors at 503-433-8550.