Can you sell your house during bankruptcy in Washington State? Yes — here’s how the process works, and the options a Kitsap County real estate agent can walk you through.
Can You Sell Your House During Bankruptcy in Washington State?
If you’ve filed for bankruptcy — or you’re considering it — and you’re wondering whether you can still sell your house, the short answer for most homeowners is yes. The process just has a few extra steps, and it helps to know what to expect before you start.
This article is for informational purposes only, not financial or legal advice. Please consult a bankruptcy attorney for guidance specific to your situation.
How selling during bankruptcy actually works
When you file for bankruptcy, your home becomes part of the bankruptcy estate — meaning it’s counted among the property and assets tied to your case. That doesn’t mean you’re stuck with it. It does mean there’s a process to follow.
You’ll typically need to:
- File a motion with the court for leave to sell real property (or get formal approval to sell)
- Include the proposed selling price, your plans for the proceeds, and the names of any creditors holding liens on the property
- Allow creditors and the trustee a window to object, with the court making the final call on how funds get distributed
- Add a contingency clause to your sale contract stating the sale depends on getting bankruptcy court permission
What happens to the proceeds? After your mortgage is satisfied, the remaining proceeds typically go toward paying unsecured creditors or covering the bankruptcy case itself — though a lot depends on your homestead exemption. If you filed under Chapter 13, selling your house usually means modifying your payment plan, since the proceeds go directly toward the bankruptcy. It’s worth requesting an itemized payoff statement before you sell, so you’re not caught off guard by fees afterward.
The exact rules can vary depending on which chapter you filed under and the specifics of your case, so this is a good moment to loop in your bankruptcy attorney alongside whoever’s helping you sell.
Your options for the sale itself
Once you know you’re clear to sell, you still get to choose how. This is where a lot of people don’t realize they have more flexibility than they think.
Option 1: List it on the market
If your timeline allows it, listing can bring in a stronger sale price — which matters here, since a higher price can mean more left over after creditors are paid. You don’t need to sink money into repairs or upgrades first; the right pricing strategy can work even with a home sold as-is.
Option 2: Sell to a reputable cash buyer
If the court timeline or your circumstances call for speed, a cash sale can close fast with far fewer moving parts — no showings, no waiting on a buyer’s financing to come through. It’s a solid option when certainty matters more than squeezing out the highest possible price.
Option 3: A full-service guided sale
This is where Maranda Schooler comes in. Going through bankruptcy is already a lot to manage, and Maranda Schooler and our team are here to make the home-selling piece feel less overwhelming — helping you understand what a listing might realistically bring versus what a cash offer could look like, so you (and your attorney) can make the call with real numbers in front of you.
You don’t have to sort this out alone
Selling a house is stressful enough without a bankruptcy case attached to it. You deserve someone who’ll lay out your real options honestly, not steer you toward whatever’s most convenient for them.
If you’d like to talk it through, reach out however’s easiest for you — fill out the contact form, call (360) 265-3319, or text (360) 265-3319.