Selling During Bankruptcy, Debt & Financial Hardship
Your Home Can Be Your Way Out
Financial hardship can feel like a trap — especially when your home is your biggest asset and your biggest burden at the same time. Whether you’re dealing with bankruptcy, IRS tax liens, credit card judgments, or overwhelming debt, selling your home quickly for cash is often the most powerful tool you have to reset your financial life.
Selling a Home During Bankruptcy
If you’ve filed for Chapter 7 or Chapter 13 bankruptcy, your home becomes part of the bankruptcy estate. You’ll need court approval to sell, but cash sales are often approved quickly because they provide a certain, clean close. The proceeds go toward paying creditors according to the bankruptcy plan.
We’ve worked with bankruptcy trustees and attorneys across Texas and Georgia to facilitate court-approved cash sales. If you’re in this situation in Dallas, Harris, Fulton, or anywhere else we serve — call us first.
💡 We work directly with bankruptcy trustees and attorneys. Our offers can be submitted as part of the court process. Call 469-665-8481.
IRS Tax Liens and Home Sales
If the IRS has filed a tax lien against you, it attaches to your real property. You can still sell, but the IRS lien must be satisfied at closing. In some cases, the IRS will accept a “discharge of lien” for less than the full amount owed when a property sale is involved. A title company handles this process at closing.
Why Sellers Choose Royal Groups Realty
Judgment Liens From Creditors
Court judgments from creditors automatically become liens on any real estate you own in the county where the judgment was filed. Like IRS liens, these are paid off through the title company at closing. Credit card companies, medical creditors, business creditors — all handled the same way.
Read our full guide: Selling a House With Liens.
Why Cash Sales Work for Hardship Situations
Fast, Certain Close
7–21 days from contract. Trustees and attorneys prefer certain buyers over MLS unknowns.
No Repairs, No Prep
The estate isn’t paying for painting or staging when you’re in hardship. We buy as-is.
Court-Ready Offers
Written offers we can submit as part of trustee approvals or court motions.
Liens Handled at Closing
Everything paid off through title company. You don’t bring anything to the table.
When Financial Hardship Leads to Tax Delinquency
Financial stress often creates a chain reaction — missed mortgage payments lead to delinquent property taxes lead to foreclosure risk. Read: Selling With Delinquent Property Taxes and How to Avoid Foreclosure in Texas.
Frequently Asked Questions
Yes — with the trustee’s approval. In Chapter 7, your home becomes part of the bankruptcy estate. The trustee decides whether the property is worth liquidating. Cash offers with certain closes are often preferred because they’re predictable.
In Chapter 13, you’re on a repayment plan and typically retain your home — but you can still sell with court approval. Selling can actually simplify your Chapter 13 by converting the asset to cash that goes toward creditors.
Yes, regularly. We submit offers as part of the court process. Trustees appreciate cash buyers because we eliminate uncertainty.
IRS liens attach to real estate and are resolved at closing. In many cases the IRS will discharge the lien for less than the full amount when a sale is involved.
Yes. Judgment liens from credit card companies, medical debt, or other creditors are handled at closing. Read: Selling With Liens.
No — if anything, selling is often less damaging than continued default. Bankruptcy is already the credit event; a clean sale during it doesn’t add additional harm.