Can I Sell My Property During Bankruptcy?
No, you cannot generally liquidate your assets (sell your property) after filing for Chapter 7 or Chapter 13 bankruptcy in Florence, S.C., without permission. If you need to do so to cover certain unexpected expenses, such as medical bills, an experienced Florence bankruptcy lawyer from Reed Law Firm, P.A. might help you obtain court approval. Discuss your individual rights and needs with our dedicated South Carolina debt relief team today by calling (803) 726-4888 or connecting with us online.
Overview of South Carolina Bankruptcy Property Sale and Distribution Laws
Once you file for personal bankruptcy under Chapter 7 or Chapter 13 of the United States Bankruptcy Code, your assets become part of the bankruptcy estate. This includes, but is not limited to, the following:
- Home
- Vehicles
- Jewelry
- Furnishings and clothes
- Money
- Stocks and bonds
- Pets
- Collectibles
- Land
- Intellectual property
Even if these assets are otherwise exempt from creditors, such as equity in your vehicle, you transfer certain property rights to the trustee after filing a bankruptcy petition. An attorney can help you sell these assets, especially if it’s necessary or you receive a high-value offer, but you must obtain permission from the court.
Filing a Motion to Sell Bankruptcy Estate Assets in Florence, S.C.
Chapter 13 repayment plans can last up to five years. It’s very common for petitioners to need to sell old vehicles, their homes, or other property during this period. If you need to sell any asset outside the normal course of business, then an experienced bankruptcy lawyer in Florence might help you file a Motion for Sale of Property under Section 363(b).
Creditors have the right to object to this motion, and the court must ensure that any proposed sale is in the best interest of all parties. In such cases, the court may permit you to sell an asset to purchase certain necessities, roll those funds into another exempt asset (such as a new car), or obtain the partial value of the sale. Be aware that a portion of any sale amount may go to your creditors, which is why you should always speak with an attorney before filing any bankruptcy motions in South Carolina.
Selling Exempt Assets During Bankruptcy Proceedings
You still need court permission to sell exempt assets once you’ve petitioned for bankruptcy. Most petitioners make this mistake. Even if you need to roll these funds into another exempt asset, such as selling an old vehicle to purchase a used vehicle under the exemption amount, you must go through the court. Reputable attorneys might help you structure these sales and motions to maximize the benefit of your Chapter 7 exemptions in South Carolina.
Bankruptcy Property Rights Attorneys in Florence
Do not liquidate even exempt assets without speaking with a compassionate Florence, S.C., bankruptcy lawyer at Reed Law Firm, P.A. We might quickly help you understand whether the sale would be lawful and how the court might distribute any funds.
If you need help selling property during Chapter 7 or Chapter 13 proceedings, we might quickly ask the court for permission. Discuss your options with our bankruptcy legal advocates today by calling (803) 726-4888 or contacting us online.
