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Getting Permission to Sell or Transfer Property

Generally, you cannot sell, refinance, gift or dispose of any of your property during your Chapter 13 case without the approval of the Bankruptcy Judge.  This includes your house, car, appliances, furniture, jewelry, etc.  Whether the property was acquired before or after you filed your case does not matter.  Whether you paid for the property or the Trustee is making payments on the property does not matter.  If you want to sell any property, then you MUST contact your attorney to determine the appropriate course of action.  Most sales require advance permission of the Bankruptcy Judge, and your attorney must file the appropriate motions to receive the Judge’s approval before the sale can proceed.  Talk to your attorney before you sell any property.

Most likely, your attorney will need to file a legal pleading with the Bankruptcy Court which will outline what you want to sell, who you are selling it to (and whether that person is a relative or a friend), the sales price, and any proposed closing date.  Additionally, if you are selling a house or a car, then information on how you found the seller will be helpful for your attorney.  For example, a home is typically listing with a realtor.