Can I Sell My House During Bankruptcy? A Complete Guide for Ohio Homeowners

  • July 29, 2025
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Can You Sell Your House In Bankruptcy in Ohio

One of the most stressful experiences you can go through in life is bankruptcy. Usually, you’re dealing with overwhelming debt, court proceedings, and uncertainty about your future. On top of dealing with all of that, you might be wondering: “Can I sell my house during bankruptcy?”

The short answer is yes, but there are important rules and steps you must follow. Just know if you’re facing this situation in Ohio, you’re not alone, and there are options available to you. Below, we’ll cover everything you need to know about selling a house during bankruptcy in Ohio, including how to do it quickly and with minimal stress. 

Understanding Bankruptcy and Your Home

When you file for bankruptcy, your property becomes part of what’s called the “bankruptcy estate”. This does not mean you automatically lose your home, but it does mean the bankruptcy trustee has some control over what happens to it. The trustee’s job is to follow bankruptcy laws and protect your creditors’ interests. 

So, what happens if I sell my house during bankruptcy? This all depends on which type of bankruptcy you’ve filed. We’ll take a look at the two most common:

Chapter 7 Bankruptcy and Your Home

Chapter 7 bankruptcy is often called “liquidation bankruptcy” because it involves selling off assets to pay creditors. However, Ohio has generous homestead exemptions that may protect some or all of your home’s equity. In Ohio, you can exempt up to $146,450 of home equity (as of 2024). So, for example, if your home is worth $200,000 and you owe $150,000 on your mortgage, your $50,000 in equity would likely be protected. 

Is selling a house after Chapter 7 possible? Yes, it is, but you are required to get court approval beforehand. A lot of homeowners have found that selling during or shortly after filing Chapter 7 helped them start fresh without the burden of mortgage payments.

Chapter 13 Bankruptcy and Your Home

Chapter 13 works differently from Chapter 7. Instead of liquidating, it is a reorganization plan where you’re able to keep your assets but must follow a court-approved payment plan for 3-5 years. If you’re thinking about selling a house during bankruptcy under Chapter 13, you’ll also need to get court permission, but it’s easier to get approval since you’re showing a commitment to paying back creditors. 

Can You Sell Your House During Bankruptcy? The Legal Requirements


1. Get Court Permission First

To even start the process, you must get bankruptcy court approval before you sell your home, and so both you and your credit report. Here is what the process involves:

  • File a motion with the court
  • Provide details about the proposed sale
  • Show that the sale is in everyone’s best interest
  • Get approval from the bankruptcy trustee

2. Work with Your Bankruptcy Attorney

Working with a bankruptcy attorney will help you navigate the court approval process. They will also make sure all paperwork is filed correctly and represent you during the hearings.

3. Consider the Timing

Whether you can sell your house after filing for bankruptcy depends on your case’s status. In Chapter 7, there is often a waiting period. In Chapter 13, you may need to modify your payment plan. If you’re uncertain about what your waiting period will be or if your payment plan needs to be adjusted, talk to your bankruptcy attorney for guidance. 

The Benefits of Selling Your House During Bankruptcy

While it might not seem like the thing to do, selling your home during the bankruptcy can help in several ways:

Immediate Debt Relief

For a lot of families, their home is their biggest asset. By selling, you’ll be able to eliminate mortgage debt and potentially get funds to pay off other creditors, which could significantly reduce your overall debt burden. 

Lower Property Taxes and Ongoing Costs

Selling your house would mean no longer being responsible for property taxes, homeowners’ insurance, HOA dues, maintenance, and repairs. Lower property taxes and ongoing costs can save you money and help you rebuild your finances. 

Fresh Start Opportunity

Proceeds from a bankruptcy house sale can give you a chance to start over in a more affordable living situation. You can rent while you work on rebuilding your credit and eventually buy again when you’re in a better place financially. 

Avoid Foreclosure

If you find yourself behind on mortgage payments, selling during bankruptcy can help you avoid the additional damage that foreclosure could cause to your credit score. 

Sell Your House Fast with H3 Homebuyers – Even During Bankruptcy!

Fill out the form below or call us at (937) 303-1499 for your FREE cash offer!

How to Sell Your House During Bankruptcy in Ohio

Step 1: Consult with Your Bankruptcy Attorney

Before making any further moves, you’ll want to talk to your attorney about your plans to sell. They will help you understand how the sale will work with your overall bankruptcy situation. 

Step 2: Get a Property Valuation

You will need to find out what your home’s current value is to help determine how much equity you have and if the sale makes financial sense. 

Step 3: Choose Your Selling Method

You have several options to choose from when it comes to selling your home:

  • Traditional Realtor Listing: Takes longer, is costly, but you might get a higher price.
  • For Sale By Owner (FSBO): Saves some on realtor commissions but requires more work on your part.
  • Cash Home Buyers: Fastest option, no repairs required, no realtor commission, easiest option

Step 4: File for Court Approval

To get court approval, your attorney will help you file the proper motions with the bankruptcy court, but you’ll need to be ready to provide this information:

  • Purchase agreement details
  • Property valuation information
  • How will the proceeds be distributed
  • Why does the sale benefit your bankruptcy case

Step 5: Complete the Sale

After you get court approval, you will be all set to go and can proceed with the closing. The proceeds will be distributed according to the court’s order and your state’s exemption laws. 

Why Choose Cash Home Buyers During Bankruptcy

What matters most when going through a bankruptcy is time and simplicity. Truthfully, traditional home sales can take months and usually have several complications that add stress to an already difficult situation. Here is how cash home buyers in Cincinnati and throughout Ohio can provide exactly what you need. 

Speed When You Need It Most

Unlike a traditional buyer, cash buyers can close in as little as 7-14 days. When you need to sell your house fast in Xenia or anywhere in Ohio, speed is so important for your bankruptcy timeline and overall peace of mind. 

No Repairs or Renovations Required

During bankruptcy, more than likely, you don’t have the extra money for home improvements, let alone expensive repairs. Cash buyers purchase homes entirely as-is, meaning you don’t need to spend any money you don’t have on repairs or updates. 

Simplified Process

The home buying process works differently with a cash home buyer. They don’t have to wait on loan approvals or appraisals, which means fewer chances of the deal falling through. 

Certainty in Uncertain Times

When everything in your life feels uncertain or overwhelming, a guaranteed sale can give you some peace of mind to help you move forward with your bankruptcy case and your life. 

Can I Sell My House After Bankruptcy Discharge?

Can you sell a house after bankruptcies have been discharged? Absolutely! Selling after being discharged can be a lot easier because you no longer need court approval. 

However, selling during the bankruptcy process often makes more sense, and here’s why:

  • You’re able to use the proceeds to pay creditors and potentially reduce your debt
  • You eliminate any ongoing housing costs during your financial recovery
  • You get to start fresh without the burden of homeownership during rebuilding 

Special Considerations for Ohio Homeowners

The state of Ohio has specific laws and exemptions that impact selling a house during bankruptcy. You want to familiarize yourself with these:

Ohio Homestead Exemption

Ohio does have a generous homestead exemption that can protect a good amount of your home equity. Make sure to understand how this applies to your situation so you can make the right decision about selling your home. 

Property Tax Implications

When it comes to Ohio property taxes, they do vary significantly from county to county. Lower property taxes in your new rental property can help your monthly budget during your financial recovery period. 

Local Market Conditions

The real estate market in Ohio does vary by region. Which is why it’s important to work with trusted cash home buyers in OH who understand the local market conditions and can make you a fair cash offer based on your home’s current value. 

H3 Homebuyers is a trusted cash home buying company. We buy houses in Ohio and have worked with several families going through bankruptcy to successfully sell their homes. We’d be happy to hear more about your situation and explain how we can help you. 

How H3 Homebuyers Can Help During Your Bankruptcy

Dealing with bankruptcy is challenging enough without adding the stress of a complicated home sale. Fortunately, there is an easier way! We’d love to share with you about our home buying company, H3 Homebuyers, and how we specialize in helping Ohio homeowners sell quickly and easily, especially during difficult financial times. 

How our home buying process works is pretty simple:

  1. You contact us for a no-obligation offer
  2. We evaluate and learn more about your home and situation
  3. We make you an all-cash offer within 24-48 hours
  4. We work with your attorney to get court approval
  5. We close on your timeline, often within 2 weeks

We fully understand the unique challenges of selling during bankruptcy and have years of experience working with bankruptcy attorneys and trustees. Rest assured that our goal is to make this process as smooth as possible while helping you get a fair price for your home. 

Moving Forward After the Sale

If you end up selling your house during bankruptcy, don’t get discouraged; this isn’t the end of your homeownership dreams. Think of it as a wise move toward financial recovery. This is what you can expect after the sale, and here’s a hint – all good things.

Rebuilding Your Credit 

With less debt and lower monthly expenses, you can put all your focus on rebuilding your credit score. Although this process does take time, don’t get discouraged; it’s achievable. 

Planning for Future Homeownership

Most people who sell during bankruptcy can buy a new home again in about 2-4 years. The important thing is to work on maintaining a stable income and rebuilding your credit during this time. 

Enjoying Reduced Stress

Without monthly mortgage payments, property taxes, HOA fees, and maintenance costs, many people find their stress levels decrease significantly, and they are a lot happier after selling. 

How to Sell a House While in Bankruptcy in Ohio

Taking the Next Step

If you’re still asking, Can I sell my house during bankruptcy?” the answer is yes, and it may just be the best decision for your financial future. The key is working with experienced professionals who understand both bankruptcy laws and the Ohio real estate market. 

The important thing to remember is not to let uncertainty keep you stuck in a tough situation. Contact us today to learn more about your options. At H3 Homebuyers, we’re here to help you navigate this challenging time with compassion, understanding, expertise, and a commitment to finding the best solution for your unique situation. 

Ultimately, selling your house during bankruptcy isn’t about giving up; it’s about making a smart financial move that allows you to start fresh, which is what you deserve. Take the first step toward your financial recovery by exploring your options today – you’ll be glad you did!

Request Your FREE Cash Offer Today!

Fill out the form below or call us at (937) 303-1499 for your FREE cash offer!

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