Can I sell my existing property while in bankruptcy? And can I buy a property while I am in bankruptcy?
The answer is yes, you absolutely can.
While you’re in bankruptcy, you can list your house in the traditional sense. And then once you have an agreement of sale, we would have to file a motion with the court to allow the sale of the property itself. Basically, so long as the proceeds of the house yield enough money to pay realtor fees, transfer taxes and the mortgage, there’s no reason why the court would not allow you to sell the property.
Then if you’re (planning on)purchasing a (new) property, there’s another simple motion called a motion to incur debt. With that motion, basically, the court wants to see that what you are buying is not a tremendous amount more money that could otherwise go to the benefit of creditors. So, as long as the house is within a reasonable (cost) amount on a regular and monthly basis – and not to the detriment of creditors – that is absolutely allowable.
The bankruptcy lawyers of Sadek Bankruptcy Law Offices are dedicated to providing bankruptcy and non-bankruptcy solutions for people looking to handle their debt problems. We are proud to help hard-working people in Pennsylvania and New Jersey get out of debt and on the path to a fresh financial start. To schedule a free and confidential consultation online or in one of our many local offices, call us at 215-545-0008 or contact us online.