How to Sell Your House When Going Through a Bankruptcy

How to Sell a House While Going Through Bankruptcy in Des Moines, Iowa

Going through bankruptcy is a tough and emotional experience. With mounting debt, legal complications, and uncertainty about your future, the last thing you need is added stress about what to do with your house. The good news? Even if you’re in bankruptcy, you still have options—and in some cases, selling your home may be the best path forward.

If you’re in Des Moines and facing bankruptcy, this article will explain your options, how the process works, and how DSM Swift Home Buyers can help by purchasing your house as-is, quickly, and without judgment.

Can You Sell a House While in Bankruptcy?

Yes—but it depends on the type of bankruptcy you filed and how the property is treated during the process. In most cases, you can still sell your home, but you’ll need approval from the court or trustee, and the sale must follow certain rules.

Types of Bankruptcy and What They Mean for Homeowners

Chapter 7 Bankruptcy (Liquidation)

• The court appoints a trustee to oversee and sell non-exempt assets to pay creditors.
• If your house has equity (value beyond what’s owed), the trustee may sell it to pay debts.
• If there’s little or no equity, or it’s protected under a homestead exemption, you may keep it—or get permission to sell it yourself.

Chapter 13 Bankruptcy (Reorganization)

• You enter a repayment plan over 3–5 years.
• You may be allowed to keep your house, but must keep making mortgage payments.
• If the mortgage is too much to handle, you might choose to sell with court permission and use the proceeds to pay creditors or restructure your plan.

Why Homeowners in Bankruptcy May Want to Sell

• 🏦 Can’t keep up with mortgage payments during or after bankruptcy
• ⛓️ Want to avoid foreclosure while the case is still active
• 💸 Need cash to pay off creditors or reduce monthly obligations
• 🧘 Want a fresh start and relief from the financial burden

Options to Explore Before Selling

Before making the decision to sell, here are a few potential alternatives to consider:

✅ Loan Modification or Forbearance

Work with your lender to adjust the mortgage terms or pause payments temporarily.

✅ Reaffirmation Agreement

In Chapter 7, you may reaffirm the loan—agreeing to keep paying the mortgage and keep the house. Be cautious: you’re on the hook even after bankruptcy is discharged.

✅ Exemption Use

Check if your home qualifies for protection under Iowa’s homestead exemption (up to a certain dollar amount in equity).

✅ Speak with Your Bankruptcy Attorney

Every situation is different, and your lawyer can help you determine the best move based on your case type, home value, and debt status.

Contact us today to get your offer!

• Property Address*
  Street Address Address Line 2 City AlabamaAlaskaAmerican SamoaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaGuamHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaNorthern Mariana IslandsOhioOklahomaOregonPennsylvaniaPuerto RicoRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahU.S. Virgin IslandsVermontVirginiaWashingtonWest VirginiaWisconsinWyomingArmed Forces AmericasArmed Forces EuropeArmed Forces Pacific State ZIP Code
• Phone*
• Email*
• First Name*
• Last Name*
• Email
  This field is for validation purposes and should be left unchanged.

Δ

Why Selling May Be the Smartest Move

If your home is causing more stress than stability, or you simply want to downsize and move forward, selling could give you the freedom you need—especially if it helps you get out from under a loan you can’t afford.

Why DSM Swift Home Buyers Is a Great Solution

At DSM Swift Home Buyers, we’ve worked with homeowners across Des Moines who are going through tough financial times—including bankruptcy. We buy houses in any condition and work with attorneys and trustees to make the process smooth, fast, and legally compliant.

Here’s how we make it easy:

✅ We buy as-is—no repairs, cleaning, or prep needed
✅ We can work with your bankruptcy trustee or attorney directly
✅ We handle all paperwork and pay all closing costs
✅ Fair cash offer within 24 hours
✅ We can close in as little as 2-4 weeks—or when the court allows
✅ Local and experienced—we know the Des Moines market

Even if you’re unsure whether selling is the right move, we’re happy to offer guidance—and if we’re not the best fit, we’ll point you to someone who can help.

Final Thoughts

Bankruptcy doesn’t mean you’re out of options—it means you’re restructuring for a better financial future. If your house is part of the burden, selling it might be your cleanest and fastest way to move forward.

DSM Swift Home Buyers is here to help you do just that. We specialize in buying houses from homeowners in difficult situations, and we do it with compassion, professionalism, and speed.

Contact us today for a free, no-obligation cash offer and learn how we can help you sell your house—even during bankruptcy.