Yes, you can sell your house during bankruptcy, but it may be subject to certain restrictions and requirements depending on the type of bankruptcy you are filing.
In Chapter 7 bankruptcy, the sale of a house is considered a “disposition of property” and must be approved by the bankruptcy court. If the proceeds from the sale are sufficient to pay off any liens or mortgages on the property, the bankruptcy court may approve the sale even if it exceeds the exemptions available under state law.
In Chapter 13 bankruptcy, the sale of a house is more complex as the bankruptcy court will typically require the debtor to apply any proceeds from the sale to their Chapter 13 repayment plan. Additionally, the sale may require the approval of the bankruptcy trustee and the creditor holding the mortgage on the property.
In both Chapter 7 and Chapter 13 bankruptcy, it’s recommended to consult with a bankruptcy attorney to understand the specific restrictions and requirements that apply to your case.