Bankruptcy and your house

The basics, from the courts

The federal courts’ “Bankruptcy Basics” explain the parts that most often affect a house:

• The automatic stay. Filing a petition generally stops most collection actions against you and your property for a time, which can pause a foreclosure. If you’ve had a bankruptcy case dismissed in the past year, the stay may be shorter or may not apply.
• Chapter 7. A trustee may sell property that isn’t protected by an exemption to pay creditors. (Chapter 7 basics)
• Chapter 13. You keep your property and repay debts through a plan, usually over three to five years. It can stop foreclosure proceedings and let you catch up on missed mortgage payments over time. (Chapter 13 basics)

What to ask about the house

• Is my house protected by an exemption, and how much equity is at stake?
• Can I sell during the case, and what approvals would a sale need?
• Would selling before or after filing change anything for me?
• What happens to my mortgage and any liens if the house is sold?
• How would a sale fit with the plan or the trustee’s timeline?

It helps to bring a realistic idea of what the house is worth, both on the open market and as-is. That’s the part Ryan can help with. An online estimate alone usually isn’t enough.

The real-estate side, not the legal side

Ryan can talk through what the house might bring if it’s listed, what a direct offer could look like and what each path involves in time and condition. He won’t tell you whether to file, which chapter to choose or how to handle your case. That’s your attorney’s job.

If a sale is part of the plan, any buyer needs to work within the trustee’s or the court’s process and timeline. Ask how they’d handle that before you agree to anything.

Related guides

• Facing foreclosure →How NJ foreclosure works and the free help available.
• Short sales →When you owe more than the house is worth.
• FAQs →Short answers to common questions.