How to Sell Your Bankruptcy House Fast in St. Paul, MN

Filing for bankruptcy can be a difficult and overwhelming experience—but it doesn’t mean you’re stuck. If you’re a homeowner in St. Paul, MN and looking to sell your house while in bankruptcy, there are options available to sell fast, avoid foreclosure, and move forward.

In this guide, we’ll walk you through the process of selling your house during bankruptcy, what challenges you may face, and how to work with the right professionals to sell quickly and legally.

Can You Sell a House During Bankruptcy?

Yes—but it depends on your bankruptcy type.
There are two common types of bankruptcy for individuals in Minnesota:

Chapter 7 (Liquidation)

• The court may liquidate assets, including your home, to pay creditors.
• You can sell the house, but you need court approval.
• Any equity in the home may be used to satisfy debts.

Chapter 13 (Reorganization)

• You keep your property and pay debts through a 3-5 year repayment plan.
• You may be allowed to sell the home, but the court will review the sale and how proceeds are used.
• Often, funds go toward repaying creditors.

So yes—you can sell, but it requires court involvement and the help of your bankruptcy trustee and/or attorney.

Why Sell Your House During Bankruptcy?

Selling your home while in bankruptcy may be the best move if:

• You’re behind on mortgage payments
• You want to avoid foreclosure
• The house is underwater (worth less than what you owe)
• You can’t afford maintenance, taxes, or insurance
• You want to use proceeds to pay off debts or start fresh

Step 1: Inform Your Bankruptcy Attorney

If you’re considering selling, notify your bankruptcy attorney immediately. They can:

• Help you get the necessary court and trustee approval
• Advise you on how the sale impacts your bankruptcy case
• Ensure you remain in compliance with all bankruptcy laws

Never try to sell the property on your own without legal guidance—it could delay your case or result in legal consequences.

Step 2: Get Court Approval

To sell your house during bankruptcy, you’ll likely need to:

• File a motion to request permission from the bankruptcy court
• Provide documentation like the purchase agreement, home value estimate, and sale details
• Work with your trustee to ensure creditors’ interests are protected

Court approval can take a few weeks, but with a prepared buyer and clear paperwork, the process moves faster.

Step 3: Decide How You Want to Sell

Option 1: Traditional Listing

You can list your house with a real estate agent, but keep in mind:

• It may take 60–90+ days to sell
• You’ll need to allow showings, inspections, and buyer financing
• Buyers may be hesitant due to the bankruptcy complication
• You’ll pay agent commissions and possibly repairs

Option 2: Sell As-Is to a Cash Home Buyer

Selling to a cash home buyer in St. Paul is often the fastest and simplest solution during bankruptcy.

Benefits include:

• Close in 7–21 days
• No repairs, no showings, no agent fees
• Court-friendly process with buyers experienced in bankruptcy sales
• They often handle the paperwork and work directly with your attorney

This can significantly speed up the process and give you a clean break.

Step 4: Use the Sale to Satisfy the Bankruptcy Plan

Once your home is sold:

• Proceeds may go to your mortgage lender and any other secured debts
• Remaining equity could be used to pay unsecured debts (Chapter 13)
• If there’s no equity, the sale can help you avoid foreclosure or surrender the home voluntarily

Work closely with your bankruptcy attorney to ensure funds are distributed properly and protect your interests.

Step 5: Move Forward with a Fresh Start

Once your home is sold and the bankruptcy process is resolved, you can:

• Eliminate mortgage debt
• Possibly reduce or eliminate remaining debts
• Avoid foreclosure or additional legal issues
• Focus on rebuilding your credit and financial stability

Selling your bankruptcy house fast may be the key to closing this chapter and starting fresh.

Final Tips for Selling Your Bankruptcy House Fast in St. Paul

• Always work with a licensed bankruptcy attorney
• Get multiple offers if possible—especially from local cash buyers
• Be transparent about your situation to avoid delays
• Don’t make repairs or upgrades—sell as-is
• Choose a buyer who understands court timelines and legal restrictions

Final Thoughts

Selling a house during bankruptcy in St. Paul doesn’t have to be complicated or stressful. With the right team—an experienced bankruptcy attorney and a professional cash buyer—you can sell your home quickly, satisfy legal obligations, and move forward with peace of mind.

If you’re looking to sell your bankruptcy house fast, as-is, and with court-compliant support, consider reaching out to a trusted local home buyer in St. Paul who can help you navigate the process with confidence.