Sell a House Fast After Bankruptcy in Houston
Reviewed by Mark Lee
Bankruptcy is hard. The calls. The letters.
The stress of mortgage payments and other outstanding debts is piling up.
If you’re asking, “How do I sell a House Fast After Bankruptcy in Houston?” You’re not alone.
You can sell, even during a bankruptcy case, and you can do it in a way that’s straightforward, honest, and built around your timeline.
Below, we explain your options, how Chapter 7 bankruptcy and Chapter 13 bankruptcy affect selling your house, where the bankruptcy trustee fits in, and how to keep the sale process smooth.
If you need a fast, as-is offer so you can move forward, Absolute Properties is here to help.
Bankruptcy Basics
Chapter 7 (“liquidation bankruptcy”)
Goal: a quick fresh start by wiping out certain unsecured debt (e.g., credit card debt, many Medical Bills) after the bankruptcy process.
Your home may become part of the bankruptcy estate. If there’s significant home equity above any exemption limit, the bankruptcy trustee may sell it to pay creditors—unless the home is treated as exempt property under Texas bankruptcy rules.
If there’s little or no non-exempt equity, the trustee may “abandon” the property, which can make selling simpler.
Chapter 13 (“repayment plan”)
Goal: catch up on missed mortgage payments and other debts over 3–5 years through a bankruptcy plan while you keep your primary residence.
Selling your home during Chapter 13 usually needs trustee and/or court approval, and sale proceeds often must follow your plan terms (for example, paying the mortgage balance, arrears, or certain outstanding debts).
Can I Sell My Houston House During Bankruptcy?
Yes, often with guardrails:
Chapter 7: If the home is part of the bankruptcy estate, the trustee controls whether and how it’s sold. If the trustee “abandons” it (no benefit to creditors), you can typically sell with fewer steps, but always confirm with your attorney.
Chapter 13: You’ll likely need to request approval. The court, trustee, and your mortgage lender may need to review the terms. Proceeds typically pay off the mortgage loan and follow the plan.
Good news: A direct as-is sale to Cash Home Buyers can shorten timelines and remove lender delays. We coordinate with your legal professionals so the sale process is clear and compliant.
Your Options (Pick the Path That Fits Your Life)
1) Sell It Fast (Direct As-Is Sale to a Cash Buyer)
A direct sale to Absolute Properties helps you move quickly with a smooth transaction:
Fast cash offer for your house after bankruptcy, as-is
Many closing costs are covered, no agent commissions or realtor fees in most cases
You choose the closing date (often ~7 days, depending on the case)
We work with your experienced bankruptcy attorney, bankruptcy trustee, and title to keep the legal process simple
Best for: Homeowners who need certainty now, avoiding showings, repairs, and bank financing delays that come with listing.
2) Hire a Real Estate Agent (List and Test the Market)
A solid real estate agent can help you target fair market value if your home shows well.
Expect legal requirements: trustee notice, potential court order, and timelines that fit your bankruptcy proceedings.
Buyers will bring inspections and financing contingencies.
You’ll pay agent fees/agent commissions plus normal seller closing costs.
The process of selling takes longer, though, if you’re under pressure from a plan or looming foreclosure process.
Best for: Homes in strong condition and owners who have time to chase the top-line sale price.
3) Keep the Home (Chapter 13)
If your Chapter 13 repayment plan is affordable, you may keep your homeownership and cure arrears over time. This path can protect your home if payments are realistic.
Consider: Total monthly payments under the plan, taxes/insurance, and whether the numbers fit your budget with room for emergencies.
4) Surrender or Short Sale (When Equity Is Thin)
If you have little equity and can’t keep up with payments, your lawyer may suggest surrendering the home or a short sale (selling for less than the mortgage balance, with bank approval). In a bankruptcy context, a short sale often still needs trustee/court involvement. Your attorney will guide the steps.
Pricing and Your Net (Why It Matters)
Sale price isn’t the only number. Look at net after payoff, taxes, plan obligations, and fees.
As-is cash offers may be lower than a fully renovated listing, but you avoid repairs, long timelines, and financing risk.
In some Chapter 7 and Chapter 13 situations, the difference between listing and cash can shrink once you add time, uncertainty, and potential buyer fall-throughs.
Goal: Make informed decisions that fit your life careful planning beats guessing.
Common Questions
Can I sell my house while the automatic stay is active?
Often yes, with trustee/court involvement to ensure the sale follows the legal process. The automatic stay generally pauses foreclosure proceedings, but your attorney must guide timing and approvals.
What if I have no equity?
In Chapter 7, trustees often abandon homes with no benefit to creditors, which can make a sale easier. In Chapter 13, a sale may still be approved, with proceeds applied to your bankruptcy plan. Ask your lawyer.
Will I lose my home?
The risk depends on equity vs. exemptions, your bankruptcy plan, and payments. The sooner you get legal guidance, the more options you typically have.
How soon can I buy a home after bankruptcy?
There’s often a waiting period with many home loan programs. A lender can review your credit report, financial situation, and home buying goals. Your attorney and lender can coordinate so you understand the path to a home after bankruptcy.
Can a cash buyer work with my attorney and trustee?
Yes. We Buy Houses in coordination with your legal team for a clean, compliant closing.
Do I have to make repairs?
No. Sell as-is. Skip the make-ready costs and focus on your fresh start.
Mistakes to Avoid
Signing a contract before talking to your bankruptcy lawyer.
Hiding equity or skipping disclosure to the trustee.
Spending on big repairs without confirming how it affects the case.
Chasing a retail number while the clock runs on arrears or court deadlines.
Ignoring taxes, HOA, or plan obligations when estimating your net.
How Absolute Properties Helps Houston Sellers
As-is, fast cash offers with clear terms
Many closing costs covered; no realtor commissions in most cases
You choose the closing date (often ~7 days, case-dependent)
Coordination with your experienced bankruptcy attorney, bankruptcy trustee, and title for a compliant sale process
Call or text : (713) 230-8059
Email address:info@absolutepropertieshtx.com
Share your street address and timeline for a free consultation and a straightforward number no pressure.
Final Word
Selling your house after bankruptcy in Houston doesn’t have to be a maze. With the right team your legal professionals, your trustee, and a local buyer who understands the complex process you can sell Your Houston House quickly, follow the rules, and protect your fresh start.