Sell a house in bankruptcy in Buffalo, NY
Yes, you can sell a house that’s in bankruptcy in Buffalo, Erie or Niagara County. The bankruptcy court has to approve the sale first, unless the trustee (the person running your case) gives the house back to you. Owe more than the house is worth? Still give us a call. Depending on the situation, we may have options that can work for you.
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Get your cash offer
We’ll reach out within 24 hours with your cash offer, usually by phone.
General information about bankruptcy and New York law as of October 2026, not legal advice. We work alongside your attorney.
Chapter 7 or Chapter 13: who decides if the house is sold?
When you file, your house becomes part of the bankruptcy estate (11 U.S.C. §541). You keep living in it. What changes is who has the power to sell it. For a house in Erie or Niagara County, the case is in the U.S. Bankruptcy Court for the Western District of New York.
| Question | Chapter 7 | Chapter 13 |
|---|---|---|
| Who can sell the house | The Chapter 7 trustee (11 U.S.C. §704). You can’t sign a deal for the house on your own while it’s estate property. | You do, through your bankruptcy attorney (11 U.S.C. §1303). |
| What has to happen first | The trustee gives notice to your creditors, and the court can approve the sale “after notice and a hearing” (§363(b)). | Your attorney files a motion to sell, the trustee and creditors get notice, and the judge signs an order. |
| What decides it | Your equity. If there’s nothing in the house for your creditors after the mortgage, liens and your exemption, the trustee often gives it back (§554). | Your plan. A sale can change your plan payments, and the trustee may ask that part of the money go to your creditors. |
| After the case | Once the trustee abandons the house or your case closes with the house still yours, you can sell it like anyone else. | The court keeps its say until the case ends. The Buffalo Chapter 13 trustee’s handbook says you can’t sell or refinance during the case without a court order. |
One thing doesn’t change with the chapter: a bankruptcy doesn’t erase the mortgage or the liens on the house. They still get paid from the sale, or the court’s order says how they’re handled.
Want the full detail on one chapter? Read selling your house in Chapter 7 or selling your house in Chapter 13.
How much equity New York lets you protect
Equity is what the house is worth minus the mortgage and everything else owed on it. In a bankruptcy, you protect part of that equity with an exemption, and that’s usually what decides whether a Chapter 7 trustee bothers to sell, or what a Chapter 13 plan has to pay. You pick one set of exemptions, New York’s or the federal list, not a mix (New York Debtor and Creditor Law §§282 and 285).
| Exemption set | How much equity it protects | Source |
|---|---|---|
| New York | $102,400 in the home you own and live in | CPLR 5206(a), as adjusted by the NYS Department of Financial Services effective April 1, 2024. Next adjustment due April 1, 2027. |
| Federal | $31,575 in a residence | 11 U.S.C. §522(d)(1), amount effective April 1, 2025. |
Amounts checked as of October 2026. Your bankruptcy attorney picks the set that protects the most of everything you own, not just the house.
A rough rule: if your equity is under the exemption you can claim, a Chapter 7 trustee usually has little reason to sell. If it’s well over, the trustee may sell, pay off the mortgage and liens, pay you your protected amount, and use the rest for your creditors.
The honest part: we can’t buy every house. Owe more than the house is worth? Still give us a call. Depending on the situation, we may have options that can work for you. If we can’t help, we’ll say so, and point you to your attorney or a free housing counselor.
How a court-approved sale works, step by step
This is the general path for a sale while the case is open. Your bankruptcy attorney handles the filings; every case is different.
Agree on a buyer and terms
The motion has to name them. For a private sale, the court’s posted procedures ask for the property, the buyer’s name and any relationship to you, the price and the terms.
The motion to sell is filed
In Chapter 13 your attorney files it; in Chapter 7 the trustee does. The district’s local rule asks for enough detail for creditors to judge whether the sale is wise (W.D.N.Y. Local Bankruptcy Rule 6004-1).
Creditors get notice
The federal rules call for at least 21 days’ notice of the sale unless the court shortens it (Federal Rule of Bankruptcy Procedure 2002(a)(2)). Objections are generally due at least 7 days before the sale date (Rule 6004(b)).
The judge rules
“Notice and a hearing” doesn’t always mean a courtroom. If nobody asks for a hearing in time, the court can act without one (11 U.S.C. §102(1)).
The order takes effect, then the closing
An order approving a sale is on hold for 14 days unless the court says otherwise (Rule 6004(h)). The closing happens after that, and the order says how the mortgage, liens and the rest of the money are handled.
Selling before you file, or after your case
Before you file
Nothing in the Bankruptcy Code stops you from selling your own house before you file, but the sale gets a close look later. The bankruptcy forms ask about anything you sold or transferred in the two years before filing (Official Form 107, question 18), and a trustee can undo a transfer made for “less than a reasonably equivalent value” while you were in financial trouble (11 U.S.C. §548). A sale at a fair price to an unrelated buyer is a different situation from deeding the house to a relative for a dollar.
The money matters too. Whatever you still have from the sale on the day you file becomes part of the estate, and cash from a sale isn’t always protected the way equity in the home you live in is. Talk with your bankruptcy attorney about timing before you sell. For some sellers, selling first and skipping bankruptcy entirely is the better outcome. Your bankruptcy attorney can tell you whether you’d still need to file.
After your case
Once a Chapter 7 trustee abandons the house, or your case closes with the house still yours, it’s out of the bankruptcy estate and you can sell it on your own. The mortgage and any liens that were on it are still there and get paid at closing.
Behind on the mortgage too? If the house you live in is in foreclosure, or your mortgage payment is more than 60 days past due, New York’s Home Equity Theft Prevention Act generally gives you 14 business days after signing to cancel a sale contract (Real Property Law §265-a). We close after that window. Filing for bankruptcy also starts an automatic stay that generally pauses a foreclosure while the case is open (11 U.S.C. §362), with limits for repeat filers. See our page on foreclosure in Buffalo.
Get your cash offer
Cash offer within 24 hours, usually by phone.
How we buy a house in a bankruptcy
Messy situations are what we do. We’re a real local Buffalo company, not an out-of-state call center, with offices in Downtown Buffalo & Tonawanda. Your attorney works for you, not for us, and the sale follows the court’s rules from start to finish.
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1. Get your cash offer
Tell us the chapter, where the case stands and who your attorney is. We’ll reach out within 24 hours with your cash offer, usually by phone. The offer comes by phone first, then in writing. Every written offer comes with a deposit. The offer comes fast; the closing waits for the court.
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2. The court approves the sale
Our name, price and terms go into the motion. We buy as-is, so there are no repairs for you to make first, and no open houses while you wait for the order.
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3. Close after the order
We cover all closing costs. We pay for all repairs. The mortgage and liens are paid from the sale the way the order says.
Most closings take 14–30 days. If the title is clear and ready, we can close in as little as 5 days. In a bankruptcy, the court’s notice period and the 14-day hold on the order come first. We close after that window.
If the house is in Niagara County
Niagara County cases go to the same court, the U.S. Bankruptcy Court for the Western District of New York, and the homestead amount is the same $102,400 under New York’s exemption. The steps above work the same way. Behind on Niagara County property taxes as well? See the Niagara County section of our back taxes guide.
Where a cash sale fits, and where it doesn’t
A bankruptcy doesn’t mean you have to sell. If your Chapter 13 plan is working and you want to keep the house, staying the course may be the better answer, and your attorney is the one to ask.
A cash sale tends to fit when:
- The house needs work you can’t pay for, and a court-approved sale has to happen anyway.
- A Chapter 7 trustee is selling, or you want the house gone before the case closes.
- Your Chapter 13 plan isn’t working and selling is the cleanest way out.
- Family or tenants live in the house. We can help with moving costs for people living in the house, depending on the situation.
- The house is vacant, inherited or out of state, and you don’t want to manage a listing during a court case. Out-of-state sellers can sign where they live with a mobile notary, or come to Buffalo for the closing if they’d rather.
A cash offer is usually lower than a top-dollar retail sale. If listing would net you more, we’ll say so.
Guides on bankruptcy, debt and the house
- Owe more than your house is worth? Your options in Buffalo
- Can I sell my house in Chapter 7 bankruptcy?
- Can I sell my house while I’m in Chapter 13?
- Behind on a second mortgage or HELOC in New York
- Selling a house with liens and judgments
- When an estate owes more than the house is worth
Frequently asked questions
Can I sell my house while I’m in bankruptcy?
Usually, yes, with permission. In Chapter 13 you sell with an order from the bankruptcy court. In Chapter 7 the trustee controls the house and decides whether it’s sold, unless the trustee abandons it to you.
Do I have to sell my house if I file Chapter 7?
Not always. It depends on your equity. If your equity is under the exemption you can claim, $102,400 under New York’s homestead exemption for a house you live in, the trustee usually has little reason to sell. Your mortgage still has to be paid if you keep the house.
What happens to my mortgage and liens when the house sells in bankruptcy?
They’re paid from the sale, or the court’s order says how they’re handled. The bankruptcy doesn’t remove them from the house by itself.
Can I sell my house before I file for bankruptcy?
Yes. You’ll have to disclose the sale in your bankruptcy paperwork, and a sale for too little can be undone. Talk with your bankruptcy attorney about timing and what to do with the money before you sell.
How long does a sale take in Chapter 13?
Plan on the court’s timeline first: at least 21 days’ notice to creditors, then the judge’s order, which is on hold for 14 days unless the court waives it. We close after that window.
Will you work with my bankruptcy attorney?
Yes. Your attorney works for you, not for us. We close after the court approves the sale, or after the trustee gives the house back to you.
Where can I get free help?
If foreclosure is part of the picture, the Western New York Law Center’s Foreclosure Prevention Project helps homeowners for free: (716) 855-0203 ext. 118 for mortgage foreclosure, ext. 124 for tax foreclosure. The NY Attorney General’s Homeowner Protection Program is 1-855-466-3456 (homeownerhelpny.org).
Tell us where the case stands
Give us the address and your phone. When we call, tell us the chapter and what the trustee or your attorney has said so far, and we’ll tell you honestly whether a cash sale makes sense.
Get your cash offer
Cash offer within 24 hours, usually by phone.
To save a PDF, choose “Save as PDF” in the print window.
General information about bankruptcy and New York exemptions as of October 2026, not legal advice. Rust Belt Cash Offer is a home buyer, not a law firm, and we work alongside your attorney. See also our main page on selling a house in Buffalo for cash.
