Yes, you can sell your house during Chapter 13 bankruptcy, but generally only with written approval from the Chapter 13 trustee or the bankruptcy court before you agree to sell. The request shows the price, the liens and where the money goes. A sale-leaseback is still a sale, so it needs the same approval.
After you talk with your attorney, you can compare sale-leaseback providers on Leaseback.com at leaseback.com/compare.
By Leaseback.com Editorial Team. Leaseback.com is an independent editorial guide to sale-leasebacks.
Last updated: November 12, 2026
Key takeaways
- Call your bankruptcy attorney before you talk to any buyer. Chapter 13 is a type of bankruptcy where you pay back debts over time through a court-approved plan.
- Expect the trustee, the official who runs your plan, to see the numbers. The request usually lists the liens (legal claims on the home for debts), and in many districts the net proceeds, the cash left after loans and costs, go to the trustee.
- If you want to stay, tell any sale-leaseback provider (you sell, then rent the home back) about your case up front, so the approval step is part of the timeline.
Key facts
- You can sell a house during Chapter 13, but generally only with written approval from the trustee or the court first. (Chapter 13 Trustee, Eastern District of Wisconsin, read November 12, 2026)
- In the Eastern District of Virginia, if no one objects during the objection period, the court may approve a sale without a hearing. (Bankr. E.D. Va. local rules, effective Dec 1, 2025)
- Of the 39 requests that turned into deals, 5 involved a bankruptcy. (homeowner request data, May 10 to November 10, 2026)
Maybe you filed Chapter 13 to save the house, and now the plan payment is the thing squeezing you. Selling can feel like giving up, but in some cases a sale can pay the rest of the plan. The catch is the order of steps. Selling first and asking later is the one move that can blow up the whole case.
Here is how a sale works inside a plan, and where a sale-leaseback fits.
You are not alone in that spot. Of the 39 requests that turned into deals among homeowners who asked about a sale-leaseback between May 10 and November 10, 2026, 5 involved a bankruptcy. One homeowner said on a call: “I tried to get protected through bankruptcy, but that didn't work out.”
Do you need the trustee's or the court's permission to sell?
In most cases, yes. The Chapter 13 trustee in Milwaukee puts it plainly: generally you cannot sell or dispose of property during your plan, and you need written approval from the trustee or the court before you sell. That applies to houses and cars, and it does not matter whether you owned the property before you filed.
Each district writes its own local rules, so the exact steps differ. Some courts use a standard motion form. In the Eastern District of Virginia, if no one objects during the objection period, the court may approve the sale without a hearing. That is your attorney's territory, and it is one more reason to call them before you call a buyer.
What goes into a request to sell?
A request to sell usually lists the property, the liens, the price and where the money goes. Your attorney can file it for you.
For personal property, the Milwaukee trustee lists what a request needs:
- a description of the property;
- the name of each lienholder;
- the balance owed on the loan;
- the expected sale amount;
- how the sale proceeds will be split, and what the sale does to your plan.
Real estate sales have their own checklist, so ask your attorney for your district's version.
Courts generally want to see that the price is reasonable, which is where an appraisal or a broker's opinion of value helps. An appraisal is a licensed expert's estimate of the home's value. A broker's opinion of value is a real estate agent's estimate. Think of it as showing your work in math class, except the teacher is a federal judge.
What happens if you sell your house during Chapter 13?
If the sale is approved, the loans on the home are paid off at closing, the day the sale becomes final, like any other sale. What happens next depends on your district and your plan. In Milwaukee, as a general rule, the net proceeds from a real estate sale go to the Chapter 13 trustee, and you send the trustee a copy of the signed closing statement. That is the paper that lists every cost and payment in the sale. In other districts the money may pay your plan off early or be split another way.
If you sell without approval, the risk is real. The Milwaukee trustee warns that the court may set the sale aside, or dismiss or convert your case. Set aside means cancel. Convert means switch your case to a different chapter of bankruptcy.
Can you sell your house to pay off Chapter 13?
Sometimes. If you have equity, meaning the home is worth more than you owe, a sale can pay the remaining plan balance, and your attorney can ask the court to approve it on that basis. Whether that ends your case early, and what you keep, depends on your plan and your district. Ask your attorney to run the numbers before you list.
Should I sell my house or file Chapter 13 first?
This one is truly a lawyer question, because selling right before filing, or filing while a sale is pending, changes what the court will look at. A bankruptcy attorney can compare both paths using your real numbers. Our bankruptcy terms glossary and debt settlement vs bankruptcy vs sell and stay cover the vocabulary and the bigger picture.
Can you sell during Chapter 13 and stay in the home?
Possibly, and the same rule applies: a sale-leaseback is a sale, so it needs the trustee's or the court's approval first. The lease that follows also matters to your plan, because rent replaces the mortgage in your monthly budget. Tell any provider up front that you are in an active Chapter 13 case so the approval step is built into the timeline.
Leaseback.com can connect you with sale-leaseback providers once your attorney has a plan for approval. Start at leaseback.com/get-started.
Here is how three providers describe themselves, using only what each one publishes:
| Provider | Where it buys | Fee | Timing |
|---|---|---|---|
| Sell2Rent | Operates nationwide, in markets with steady rental demand, as of October 2026 | 6% or a minimum fee of $15,000, based on property conditions, taken from the proceeds at closing | Many close within 30 days |
| Truehold | 13 states and 24 cities, as of November 2026 | 5.5 percent transaction fee on the purchase price, plus third-party closing fees, as of October 2026 | Ask the provider |
| StayFrank | More than 40 metro areas, as of October 2026 | Not published, as of October 2026 | Ask the provider |
Sell2Rent says it operates nationwide, in markets with steady rental demand, as of October 2026. Its fee is 6% or a minimum fee of $15,000, based on property conditions, taken from the proceeds at closing. Closing costs are separate. Many transactions can close within 30 days, depending on the buyer's financing, inspections, appraisals, and title requirements. The first step is a free evaluation. The number of offers varies by property and market. Truehold says it charges a 5.5 percent transaction fee on the purchase price, plus third-party closing fees, as of October 2026. Truehold buys in the 13 states and 24 cities Truehold lists, as of November 2026, and StayFrank says it serves more than 40 metro areas, as of October 2026. Traditional cash buyers usually buy below market value, so line up every offer against what the home could sell for on the open market.
Should I sell my house during Chapter 13?
It depends on whether your plan is working and whether you have equity. A bankruptcy attorney can go over your choices with you.
- The plan is working and you want to keep owning: stay the course and talk to your attorney about any payment trouble early.
- The plan payment is too heavy and you have equity: ask your attorney whether an approved sale, or a sale with a lease back, makes sense.
- You are not sure the plan can work at all: get a full review from a bankruptcy attorney before you sign anything with anyone.
This article is general information, not legal advice. Talk with a bankruptcy attorney before you sell.
How can Leaseback.com help?
Leaseback.com is a free editorial guide to sale-leasebacks. We don't charge homeowners anything, and we connect you with leaseback providers, compared side by side at leaseback.com/compare. Bring your attorney's answer on approval, then compare providers side by side.
Leaseback.com may receive a referral fee from partners featured here.
Frequently asked questions
Can I sell my house in Chapter 13 bankruptcy?
Yes, but generally only with written approval from the Chapter 13 trustee or the bankruptcy court before you sell. Home sales have their own checklist, so ask your bankruptcy attorney for your district's version. Your attorney can file the request for you.
What happens if I sell my house during Chapter 13?
With approval, the loans on the home are paid off at closing. The rest is handled under your plan and your district's rules. In some districts the cash left over goes to the trustee. If you sell without approval, the court can cancel the sale, dismiss (end) your case, or convert it to another type of bankruptcy.
Can I sell my house to pay off Chapter 13?
Sometimes. If you have equity, an approved sale can pay the rest of what you owe under the plan. Whether that ends your case early depends on your plan and your district. Ask your bankruptcy attorney to run the numbers first.
Should I sell my house or file Chapter 13?
It depends on your equity, your income and what you want to keep. Selling before you file, or filing while a sale is pending, changes what the court looks at. Compare both paths with a bankruptcy attorney before you decide.
Do I need the trustee's or the court's permission to sell?
In most districts, yes. You generally need written approval from the trustee or the court before you agree to sell. The exact steps depend on your district's local rules, and your attorney will know them.