How to Sell Your House During Bankruptcy in Oklahoma City

How to Sell Your House During Bankruptcy in Oklahoma City

In October of 2022, there was a twenty-seven percent increase in chapter 13 bankruptcy filings over the previous year. Bankruptcies, including all chapters, total a seven percent increase overall, which correlates strongly with the seven percent increase in inflation. Many homeowners are overwhelmed by their debt. As financial issues due to circumstances beyond their control changed their ability to pay creditors, they find they have no option but to claim bankruptcy, which can stop a foreclosure on their primary residence. That means that if you own a home when you file for bankruptcy, it becomes part of the bankruptcy estate, the property or assets you own, and the Court will determine if an when you can sell it.

Those with secured and unsecured debts totaling less than $2,750,000 are eligible for chapter 13, which is a reorganization plan that is paid over time. It will require you to make monthly payments for several years that will be applied to your debt. At the end of the plan you will go back to making payments on the remaining debt that has not been paid in full.

Chapter 7, on the other hand, is a liquidation process in which the trustee sells your assets to pay debts. The trustee will evaluate your total income, debt, and ability to repay. Often, these homeowners want to sell their houses to solve at least some of their financial difficulties but wonder if it is possible during bankruptcy proceedings. 

While the rules for the process may differ for the type of bankruptcy you file under, and many factors influence the final determination, for most homeowners, the short answer is yes. So read on as we explore how to sell your house during bankruptcy in Oklahoma City. Please note that this article is for informational purposes, not financial or legal advice.

Court Permission

You should always have an attorney to handle the bankruptcy. That is not something you want to make a mistake with. In order to sell your house, your attorney will need to file a motion with the court for leave to sell real property or approval to sell your house during bankruptcy in Oklahoma City. The motion will include the selling price, your plans for the proceeds, and names of creditors holding liens on the property. This motion allows your creditors and any trustee to object, with the court determining the disbursement of any funds.


Any sales contract will need to include a contingency clause to sell your house during bankruptcy in Oklahoma City, stating that the sale is contingent upon obtaining the approval of the bankruptcy court. However, under chapter 7, the trustee may decide on their own, to sell the house if there is the possibility of getting other debts paid once it sells.


You may wonder what happens to any proceeds after the mortgage is satisfied when you sell your house during bankruptcy in Oklahoma City. With the funds from the sale, the trustee pays any secured debts like the mortgage or taxes owed on the property. Then you will receive the exempted amount you are entitled to and the cost of the bankruptcy. Any remaining funds will be used to satisfy any unsecured creditors, such as credit cards or judgments. Of course, much will depend on your homestead exemption.

Planned Payments

Under chapter 13 you will have monthly payments that must be made for a certain number of years. If you sell your house during bankruptcy in Oklahoma City, you will need to modify your planned payments. Again, this is why you should have an attorney, to make sure the calculation is correct. 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 Oklahoma City, you should request an itemized payoff statement. Many times the payoff may include attorney fees, interest, or other costs that do no show up in the mortgage balance you receive with your monthly statement. This is often a surprise for many sellers. 


Don’t hesitate! With competition still driven by low supply and rising interest rates on the horizon, now is the time to cash in on your house, and the best way to sell your house during bankruptcy in Oklahoma City is to sell directly to the cash investors at 1-800-2SellHomes. Our policy at 1-800-2SellHomes is full transparency through every step of the process. We want you to decide which sales method works best for your situation. There is no solution that works for everyone. Our staff from 1-800-2SellHomes will detail your expenditures and potential profits from a conventional listing with an agent, vs. our offer, which you’ll agree is fair. At 1-800-2SellHomes, we do this because we are your neighbors here in Oklahoma City, 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. We have 1000’s of happy sellers for a reason. We treat people fairly and do what we say we are going to do. 

The seasoned pros at 1-800-2SellHomes have experience with sellers going through bankruptcy. Although bankruptcy may be scary, we have the solution you seek. We will provide you with a guaranteed closing date, charging no commissions or closing costs with no unpleasant surprises. It couldn’t be easier. If you’d like to avoid the work and out-of-pocket costs of prepping your house to list on the Oklahoma City real estate market, a direct sale to the cash investors at 1-800-2SellHomes is the solution. The cash investors at 1-800-2SellHomes 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 a cash investor from 1-800-2SellHomes. For a no-hassle sale of your home during bankruptcy: a cash investor from 1-800-2SellHomes will buy your house directly, as-is, for cash. Call 1-800-2SellHomes at (800) 273-5546.

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