How to Sell Your House During Bankruptcy in San Antonio

How to Sell Your House During Bankruptcy in San Antonio

When filing for bankruptcy, the home a person owns is added to their bankruptcy estate, the collection of assets or properties they possess. In October of 2022, the number of chapter 13 bankruptcy filings rose twenty-seven percent from the previous year. Overall, bankruptcies for all chapters surged seven percent, matching the increase of inflation. Homeowners are typically overwhelmed by the amount of debt they are struggling to pay off. If an external financial hardship occurs and causes them to be unable to pay creditors, bankruptcy is usually the only option, halting any possible foreclosures of their primary residence.

Those with secured and unsecured debts totaling less than $2,750,00 are eligible for chapter 13. However, chapter 7 is a liquidation process in which the trustee sells your assets to pay debts based on 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. 

For the majority of homeowners, it is possible to sell a house during bankruptcy proceedings. The specifics depend on the type of bankruptcy, as there are various criteria to take into account. This article will explain the procedure of how to sell your house during bankruptcy in San Antonio, though it is purely informational and should not be used in place of financial or legal counsel.

Court Permission

Filing a motion in the court is required in order to obtain the permission to sell your house in San Antonio while going through bankruptcy. Your motion should include the selling price, your plan for how you’ll use the proceeds, and the names of the creditors who hold liens on the property. This motion provides your creditors and the trustee with an opportunity to express their objections, with the court determining how the funds will be disbursed.


To sell your house during a bankruptcy in San Antonio, a contingency clause must be included in the contract. Under chapter 7, the trustee may choose to sell your home if there is a high equity amount not covered by your exemption. From the proceeds of the sale, the trustee will cover secured debt such as your mortgage, then distribute the amount of exemption that you are entitled to, and give the unsecured creditors a proportionate share of the remainder.


If you’re curious about what becomes of the profits after a mortgage is paid off upon selling your house during bankruptcy in San Antonio, it largely depends on your homestead exemption. The money, however, would normally go towards fulfilling any unpaid creditors or covering the costs of the bankruptcy case.

Planned Payments

If you’re in a Chapter 13 bankruptcy in San Antonio, you may need to alter your proposed payments if you sell your house. Depending on the sale amount, your payment plan could be finished off quicker, as the earnings go straight to the bankruptcy.

Itemized Payoff Statement

When filing for bankruptcy in San Antonio, it is prudent to request an itemized payoff statement in order to guarantee that no fees come as an unwelcome surprise after you sell your house.

Lone Star Real Estate Solutions LLC

Don’t procrastinate! With a restricted market supply and an expected rise in interest rates, it is an opportune moment to make the most of your home. Selling directly to the cash investors at Lone Star Real Estate Solutions LLC is the best option for selling your house in bankruptcy in San Antonio. Transparency is of the utmost importance at Lone Star Real Estate Solutions LLC and our representatives will explain the expenses and possible profits of going through a conventional agent vs our offer to make sure you feel confident in your choice. At Lone Star Real Estate Solutions LLC, we prioritize our customers because we are neighbors and part of the San Antonio community. Our goal is for you to be content with the outcome of our collaboration long after the sale is completed. 

For homeowners facing bankruptcy, the knowledgeable experts at Lone Star Real Estate Solutions LLC have the answer you are looking for. They will provide you with a guaranteed closing date and no hidden fees. As opposed to preparing your house for the San Antonio real estate market, a direct sale to the cash investors from Lone Star Real Estate Solutions LLC eliminates any commission or closing costs and keeps the process free of any unpleasant surprises. With this alternative, there is no need to worry about showings, and your wallet can stay in your pocket. If you want a straightforward sale of your home during bankruptcy, Lone Star Real Estate Solutions LLC is the place to call at (210) 807-6567.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!