Selling a House During Bankruptcy in Nevada
If you are considering bankruptcy or have already filed, you may be wondering whether you can sell your house. The answer depends on the type of bankruptcy, the timing of the sale, and your state exemptions. This guide covers what Nevada homeowners need to know.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified bankruptcy attorney before making any decisions about selling property during bankruptcy.
Chapter 7 vs Chapter 13 Bankruptcy
In Chapter 7 bankruptcy, a trustee may sell non-exempt assets to pay creditors. If your home equity exceeds Nevada’s homestead exemption (currently up to $605,000 for your primary residence), the trustee could potentially force a sale.
In Chapter 13 bankruptcy, you create a repayment plan while keeping your assets. Selling your home during Chapter 13 requires court approval.
Selling Before Filing
Some homeowners choose to sell their home before filing for bankruptcy. This allows you to control the sale, potentially get a better price, and convert the equity to cash. However, the timing and use of proceeds matter — a bankruptcy attorney can help you navigate this strategically.
The Cash Sale Option
A cash sale to Modern Home Offer can close quickly — often before a bankruptcy filing date. This gives you the most control over your property and proceeds.