Selling Rental Property while in Bankruptcy
Owning and maintaining one or more rental properties can sometime be financially draining, especially while in bankruptcy. This is usually caused from tenants having to be evicted for failure to pay rent or repairs and upkeep after a tenant has moved out. You can sell the rental property while in bankruptcy however a motion to sell real property must be filed with the court.
The Chapter 13 Trustee will review the motion and the sales contract for approval. When you filed your bankruptcy then your attorney would have exempted as much the equity in your non-exempt rental property through wild card exemptions and this would be the amount you would retain from the net proceeds. However, in some case, there are no exemptions remaining and all the net proceeds will be paid the the Chapter 13 Trustee when property is sold.
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