Selling your house during bankruptcy in Augusta, Georgia can feel like a complicated process—but with the right guidance, it’s absolutely possible. Whether you’ve filed for Chapter 7 or Chapter 13 bankruptcy, selling your home may be a strategic way to resolve debt and regain financial stability. You’re not alone: in October 2022, Chapter 13 bankruptcy filings increased by 27% compared to the previous year, with total bankruptcy filings rising 7%—mirroring national inflation trends.
If mounting debt has made it impossible to keep up with mortgage payments, you may be wondering if selling your home is even allowed during bankruptcy. The short answer is yes—you can sell your house during bankruptcy in Augusta, Georgia, but you’ll need to follow specific steps depending on the type of bankruptcy you filed.
This article is intended for informational purposes only and not legal advice.
Court Permission
To sell your house while in bankruptcy, you must first get permission from the bankruptcy court. This involves filing a motion for leave to sell real property, detailing your intended sale price, how the proceeds will be used, and the names of creditors with liens on the property.
This motion gives the trustee and your creditors an opportunity to object, and the court will decide how any funds from the sale will be distributed. This step is critical whether you’re selling as part of a Chapter 7 or Chapter 13 case.
Contingency
When selling your home during bankruptcy in Augusta, Georgia, the sales contract must include a bankruptcy court approval contingency. This clause protects both you and the buyer by making the sale contingent on receiving the court’s permission.
If you’re in a Chapter 7 bankruptcy, the court-appointed trustee may decide to sell the property if it contains significant non-exempt equity. After paying off any secured debts (such as the mortgage), the trustee distributes remaining proceeds to unsecured creditors, while you may receive the exempted portion under your state’s homestead exemption laws.
Proceeds
Wondering what happens to the profits when you sell your house during bankruptcy in Augusta, Georgia? That depends on several factors, including:
- The amount of equity in the property
- Your state’s homestead exemption limit
- The type of bankruptcy filed
Typically, in Chapter 7 cases, any proceeds after mortgage payoff go toward paying off creditors. In Chapter 13, proceeds will impact your repayment plan, possibly paying it off early or requiring a modification based on the sale value.
Planned Payments
Under Chapter 13 bankruptcy, homeowners follow a court-approved plan to repay debts over three to five years. If you sell your house during this time, your repayment plan will need to be modified. Depending on how much you earn from the sale, you may be able to satisfy your plan sooner, bringing quicker relief and possibly even discharging remaining debt obligations.
Itemized Payoff Statement
Before finalizing the sale, request an itemized payoff statement to ensure all amounts owed—including interest, fees, and escrow shortages—are accounted for. This will prevent any surprises at closing and ensure the sale goes smoothly.
Martin Legacy Holdings
Selling your house during bankruptcy in Augusta, Georgia doesn’t have to involve listing, repairs, or waiting months for a buyer. The simplest and most stress-free option may be to sell your home directly to a reputable cash home buyer like Martin Legacy Holdings.
At Martin Legacy Holdings, we specialize in helping homeowners going through bankruptcy or foreclosure. Here’s why more sellers in Augusta, Georgia trust us:
- No commissions, fees, or closing costs
- Cash offers within 24 hours
- Sell as-is—no repairs, cleaning, or showings
- Flexible closing dates, often in as little as 7 days
- Full transparency every step of the way
Our team at Martin Legacy Holdings will walk you through your options and compare a traditional sale vs. a direct offer, so you can choose what works best for your unique situation. We’re local, we care about our community, and we want you to feel confident and supported—before, during, and after closing.
A Simple, Stress-Free Exit Strategy
If you’re facing bankruptcy and need to sell your house in Augusta, Georgia, the last thing you need is more complexity. With Martin Legacy Holdings, you can avoid legal roadblocks, skip the hassles of the MLS, and move forward with financial peace of mind.
Let the experienced professionals at Martin Legacy Holdings provide you with a no-obligation cash offer for your home. We understand the sensitive nature of bankruptcy and can work in partnership with your legal counsel or trustee to make sure everything is done properly and legally.
Call Martin Legacy Holdings at (706) 397-3727 today to explore your options for a fast, confidential home sale during bankruptcy in Augusta, Georgia.