Kevin Buys Baltimore Houses · Since 2006
Selling Your House During Bankruptcy in Maryland
If you’ve filed for bankruptcy, or you’re thinking about it, selling your house works differently than a normal sale. The court, the trustee and your attorney may all have a say. This page explains the basics in plain language, so you know what to ask your bankruptcy attorney.
(443) 585-0922- Talk to your bankruptcy attorney first
- As-is cash offer in about 24 hours once we have the details
- Closing date planned around your case, not ours
Get My Cash Offer
No obligation. An offer request is not a contract.
No Fees. No Obligation. No Costly Repairs. Submit a little information below about your property or call: 443-585-0922 for a cash offer now.
Talk to your bankruptcy attorney first
Bankruptcy rules depend on your chapter, your plan, your exemptions and where your case stands. Before you sign anything about the house, including an offer from us, talk to your bankruptcy attorney. If you’re in an open case, we’ll work through your attorney and the trustee, not around them. We’re glad to send our written offer straight to your attorney to review.
If you don’t have a lawyer, the U.S. Bankruptcy Court for the District of Maryland has a Don’t Have a Lawyer? page with low-cost and no-cost options.
This is general information, not legal advice. We buy houses. We’re not attorneys, and we can’t tell you what to do in your case.
What the automatic stay means for your house
When a bankruptcy petition is filed, an “automatic stay” goes into effect. It stops most collection actions against you and your property, including lawsuits, wage garnishments, collection calls and foreclosures, while it lasts.
- It isn’t unlimited. Some actions aren’t covered, and in some situations the stay lasts only a short time.
- A lender can ask to lift it. A creditor can file a motion asking the court for permission to go forward, for example with a foreclosure.
- It generally ends when the case does. The stay is generally lifted when the case is closed, dismissed or discharged.
Filing also creates a bankruptcy “estate,” which becomes the temporary legal owner of your property, including your house. That’s the main reason you usually can’t sell the house on your own while the case is open.
Chapter 7 vs. Chapter 13: how a sale usually works
Most homeowners file under Chapter 7 or Chapter 13. The chapter you’re in shapes who has to sign off on a sale.
| Topic | Chapter 7 | Chapter 13 |
|---|---|---|
| What it is | Liquidation: a trustee gathers and sells property that isn’t exempt to pay creditors. | A repayment plan, usually over three to five years. |
| Who controls the house | The trustee oversees property of the estate. | You usually stay in possession while you make plan payments. |
| Selling the house | A sale usually involves the trustee, and often the court. Whether the trustee gets involved depends on how much equity there is after the mortgage, liens and your exemptions. | A sale usually needs the court’s approval, typically through a motion to sell filed by your attorney. The trustee and creditors usually get notice. |
| Mortgage payments | Ask your attorney how your mortgage is being handled. | You must keep making the regular mortgage payments that come due during the plan. |
Chapter 11 and other chapters have their own rules. Ask your attorney if your case isn’t a Chapter 7 or Chapter 13.
After a dismissal or a discharge
If your case is dismissed
A dismissal ends the case without a discharge, and the automatic stay generally ends with it. Collection actions, including a foreclosure, can usually resume. You can usually sell without court approval at that point, but the mortgage, liens and any tax balances still have to be paid at closing. If a prior case was dismissed for certain reasons in the last 180 days, you may not be able to file again right away, so ask your attorney before you count on refiling.
If you receive a discharge
A discharge releases you from personal liability for many debts. It doesn’t erase a valid mortgage or other lien on the house unless that lien was dealt with in the case. The lender can still enforce the lien against the property, so the lien is normally paid from the sale at closing. Your attorney can tell you whether anything else needs to happen in your case before you sell.
When foreclosure and bankruptcy overlap
Some homeowners file for bankruptcy while a foreclosure is already underway. At a high level:
- Filing generally pauses the foreclosure while the automatic stay is in effect.
- In Chapter 13, you may be able to catch up on past-due mortgage payments over time through your plan.
- You can still lose the home if the foreclosure sale was completed under state law before you filed, or if you fall behind on the new payments after you file.
- If the stay is lifted or the case is dismissed, the foreclosure can usually move forward again.
We can’t promise that a sale will stop a foreclosure or fit a court deadline. If you’re facing both, your bankruptcy attorney is the right first call. Our guide to selling before foreclosure covers the Maryland foreclosure side.
How a cash buyer can work with your trustee and attorney
Kevin Buys Baltimore Houses (KDD Development LLC) is a family-owned company in Owings Mills, and Kevin Davis has been in real estate since 2006. When a seller is in an open bankruptcy case, here’s how we fit in:
- A written offer your attorney can review. We put the price and terms in writing so your attorney and the trustee can see exactly what’s proposed.
- A flexible closing date. A motion to sell, a hearing or trustee review can take time. We set the closing date around those steps.
- As-is terms. No repairs, cleaning or showings, so there’s less to manage while your case is open.
- Closing through a title company. The title company works from the payoff figures and any court order, so liens are paid at closing the way the court and your attorney require.
A cash sale isn’t right for everyone. Your attorney may suggest another path, and that’s fine. We’ll give you straight numbers either way.
What happens next
Simple steps, and your attorney stays in the loop.
Tell us about the house
Share the address, the condition, and whether you’re in an open case.
Get a written cash offer
Typically within about 24 hours after we have what we need, ready for your attorney to review.
Close when your case allows
Once any required approval is in place and title is clear. No obligation.
Areas we serve
We buy houses for cash across Baltimore City, Baltimore County, Howard, Anne Arundel, Carroll and Prince George’s Counties. Not sure if your address qualifies? Call (443) 585-0922.
Common questions about selling a house during bankruptcy
Can I sell my house while I’m in bankruptcy?
Often, yes, but not on your own. Once you file, your house becomes part of the bankruptcy estate, so a sale usually needs the trustee’s agreement, the court’s approval, or both. In Chapter 13, your attorney typically asks the court for permission with a motion to sell. Your attorney can tell you what your case requires.
Should I talk to my bankruptcy attorney before I talk to a buyer?
Yes. Talk to your bankruptcy attorney first, before you sign anything. They know your plan, your exemptions and your deadlines. If you’re in an open case, we’ll work through your attorney and the trustee, not around them.
Does the automatic stay stop a foreclosure?
Filing a bankruptcy petition usually stops most collection actions, including foreclosure, while the stay is in effect. A lender can ask the court to lift the stay, and some actions aren’t covered. In Chapter 13, you can still lose the home if the foreclosure sale was completed before you filed, or if you fall behind on new mortgage payments.
What happens to my house if my case is dismissed?
When a case is dismissed, the automatic stay generally ends, and a lender can usually pick up where it left off, including a foreclosure. You can usually sell the house again without court approval, but the mortgage and other liens still have to be paid at closing.
Can I sell after my bankruptcy discharge?
Usually, yes. A discharge ends your personal liability for many debts, but a mortgage or other valid lien on the house generally stays on the property. That means the lien is normally paid from the sale at closing. Ask your attorney whether your case also needs to be closed first.
How fast can I get a cash offer?
We typically make a cash offer within about 24 hours after we have the property details we need. The closing date depends on your case, including any trustee review, court approval and title work. We plan the closing around those steps, not the other way around.
Official resources
- Bankruptcy Basics (U.S. Courts), including Chapter 7, Chapter 13 and the discharge
- U.S. Bankruptcy Court for the District of Maryland and its Don’t Have a Lawyer? page
- Frequently asked questions about bankruptcy (Maryland People’s Law Library)
What Maryland sellers say
More seller stories · Questions? Call (443) 585-0922.
Want a cash offer to share with your attorney?
Call or request an offer. We’ll give you straight answers and a written offer your attorney can review.
Or request a cash offer online. No obligation.
No Fees. No Obligation. No Costly Repairs. Submit a little information below about your property or call: 443-585-0922 for a cash offer now.
This is general information, not legal advice. Kevin Buys Baltimore Houses / KDD Development LLC buys real estate. We’re not attorneys or bankruptcy trustees, and we can’t advise you on your case. Talk to your bankruptcy attorney before you make any decision about your house. Related: Before foreclosure · Behind on taxes · Probate property · Sell your house fast · Home.