By Ullian Associates of The Law Firm of Ullian & Associates, P.C. on May 5, 2015
Yes, a Chapter 13 does not prevent you for selling assets, but any sale requires court approval. Prior to taking any action, you should speak to your bankruptcy attorney who can ensure that any equity in your house has been exempted in your bankruptcy. When you hire a real estate broker, he/she will need to be approved as the real estate broker by the Bankruptcy Court in order to receive his/her sales commission. Be upfront with your broker regarding the bankruptcy as he/she will need to work with your bankruptcy attorney. Once you have an executed Purchase and Sale Agreement, this also needs to be approved by the Bankruptcy Court, before your closing can take place. It is important to provide the Purchase and Sales Agreement to your attorney as soon as possible. Many times, due to the sale, you will need to amend your bankruptcy Plan since your expenses will have changed, so it is important to set up a meeting with your attorney to see if you will need an Amended Plan after your sale.
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