When homeowners file for bankruptcy, their home becomes part of the bankruptcy estate—essentially all assets they 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 rise in inflation. Many homeowners find themselves drowning in debt. As financial hardships beyond their control impact their ability to meet creditor obligations, bankruptcy often becomes their only viable option, which can temporarily halt a foreclosure on their primary residence.
Individuals with secured and unsecured debts under $2,750,000 qualify for chapter 13 bankruptcy. Meanwhile, chapter 7 involves liquidation where trustees sell assets to satisfy debts based on income, total debt, and repayment capability. In these challenging situations, homeowners often want to sell their properties to address their financial problems but are uncertain whether this is possible during active bankruptcy proceedings.
While specific rules vary depending on your bankruptcy type and multiple factors influence the final decision, for most homeowners, the short answer is yes—you can sell. Continue reading as we explore how to sell your house during bankruptcy in Oklahoma. Please note that this article provides information only and should not be considered financial or legal advice.
Court Permission
To sell your house during bankruptcy in Oklahoma, you’ll need to file a motion with the court requesting permission to sell real property. This should include the proposed selling price, your plans for the proceeds, and names of creditors with liens on the property. This motion allows creditors and trustees to raise objections, with the court ultimately determining how funds will be distributed.
Contingency
In traditional sales during bankruptcy in Oklahoma, you must add a contingency clause to your contract stating that the sale depends on obtaining bankruptcy court approval. Under chapter 7, however, the trustee might choose to sell your house if it has substantial unprotected equity beyond your bankruptcy exemption. The trustee then uses these funds to pay secured debts like mortgages, provides you with your exempted amount, and distributes any remaining money proportionally among unsecured creditors.
Proceeds
You might wonder what happens to proceeds after satisfying your mortgage when selling your house during bankruptcy in Oklahoma. Much depends on your homestead exemption. However, remaining funds typically go toward paying unsecured creditors or covering bankruptcy case expenses rather than returning to you directly.
Planned Payments
Under chapter 13 bankruptcy, selling your house in Oklahoma requires modifying your payment plan. Depending on the final sale value, you might complete your plan earlier than expected as proceeds go directly toward satisfying your bankruptcy obligations.
Itemized Payoff Statement
To avoid unexpected costs after selling your house during bankruptcy in Oklahoma, always request an itemized payoff statement that clearly outlines all remaining obligations.
North Gate Equity
Don’t delay! With competition driven by low inventory and interest rates potentially rising, now is the perfect time to sell your house. The most straightforward way to sell during bankruptcy in Oklahoma is through direct sale to real estate solution experts at North Gate Equity. As investors and problem solvers, we prioritize complete transparency throughout the process because we want you to make the best decision for your situation. A North Gate Equity investor will provide a detailed breakdown comparing potential profits from traditional listings versus our fair cash offer. At North Gate Equity, we take this approach because we’re your neighbors here in Oklahoma—we genuinely care about our community and want you to feel confident in your decision long after closing.
The experienced team at North Gate Equity specializes in helping homeowners navigate bankruptcy sales, offering guaranteed closing dates with no commissions or closing costs—and absolutely no surprises. If you’d prefer to avoid the hassle and expenses of preparing your home for the Oklahoma real estate market, a direct sale to North Gate Equity is your solution. Our investors never charge commissions and have no hidden fees. You can relax knowing you won’t even need to host showings when you sell directly to North Gate Equity. For a straightforward sale during bankruptcy, we’ll buy your house as-is, directly, for cash—helping you get rid of your burdensome property fast.