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Home›Financial Distress Resource Center›Bankruptcy — Sell House Buffalo NY
BANKRUPTCY & SELLING
YOUR HOUSE IN BUFFALO NY
Filing bankruptcy in New York has specific implications for homeowners. Whether you are considering bankruptcy, in an active filing, or emerged from bankruptcy, NCB helps Buffalo homeowners navigate the intersection of bankruptcy and real estate at every stage.
Bankruptcy and Your Home in New York State
New York State has a homestead exemption — the amount of home equity protected from creditors in bankruptcy. As of current NY law, the homestead exemption in Erie and Niagara County is $170,825. This means:
- Equity below the exemption: Bankruptcy trustee typically cannot force a sale — your home is protected up to the exemption amount
- Equity above the exemption: In Chapter 7, the trustee may sell the home, pay you the exempt amount, and use the excess equity to pay creditors
- Chapter 13: You keep the home and pay creditors through a 3–5 year repayment plan — but you must be able to sustain the mortgage payments throughout
Important: This is general information, not legal advice. Bankruptcy law is complex and your specific situation requires consultation with a licensed bankruptcy attorney before making any decisions.
Selling Before Filing Bankruptcy
Selling your home before filing bankruptcy is an option worth careful consideration. If your home has equity above your debts and the homestead exemption, selling before filing can convert that equity into cash — which may then be partially protected under New York’s cash exemption rules depending on timing and use. This requires careful coordination with a bankruptcy attorney — timing matters significantly.
Selling During Active Chapter 7 Bankruptcy
If you are in an active Chapter 7 bankruptcy, your home is part of the bankruptcy estate. A sale during active bankruptcy typically requires bankruptcy court approval and trustee coordination. NCB has experience working with bankruptcy trustees and attorneys to facilitate sales in these situations. We understand the process and work within it.
Selling After Bankruptcy Discharge
After a bankruptcy discharge, you can sell your home normally — a discharge does not affect your ownership rights. NCB purchases homes from sellers who have recently emerged from bankruptcy with no complications from the prior filing, provided the home title is clean.
Free bankruptcy consultation: Western District of New York Bankruptcy Court (716-362-3200). Neighborhood Legal Services (716-847-0650) provides free legal assistance for qualifying homeowners facing bankruptcy. Always consult a licensed attorney before making decisions that intersect bankruptcy and real estate.
Bankruptcy Home Sale — Common Questions
Can I sell my house if I’m filing bankruptcy in Buffalo NY?
It depends on the chapter and timing. Before filing, you can sell normally — but consult a bankruptcy attorney first as timing has implications. During active Chapter 7, a sale typically requires court and trustee approval. During Chapter 13, selling requires court approval and proceeds may go toward your repayment plan. NCB works with trustees and attorneys in all of these scenarios.
Will filing bankruptcy stop a foreclosure on my Buffalo NY home?
Filing bankruptcy triggers an automatic stay — which temporarily halts foreclosure proceedings. This can buy time to reorganize. However, lenders can file motions to lift the stay, and the temporary nature of bankruptcy protection means it addresses the symptom, not the cause. A cash sale before foreclosure, with or without bankruptcy, may be a cleaner path. Consult a bankruptcy attorney and call NCB to evaluate both options simultaneously.
What is New York’s homestead exemption in Erie County?
New York’s homestead exemption for Erie and Niagara County is currently $170,825 — meaning up to that amount of home equity is protected from creditors in bankruptcy. Equity above this amount may be accessible to the bankruptcy trustee in a Chapter 7 filing. This figure is subject to change — verify with a bankruptcy attorney for current amounts.
Nickel City Buyers — Bankruptcy Home Sale — Buffalo NY
Nickel City Buyers, LLC purchases homes from Buffalo and Western New York homeowners navigating bankruptcy at any stage — pre-filing, active Chapter 7 or 13, or post-discharge. We work with bankruptcy trustees, attorneys, and courts as required. Serving all of Erie County and Niagara County including Buffalo, Cheektowaga, Amherst, Tonawanda, West Seneca, Hamburg, Orchard Park, Lancaster, Depew, Kenmore, Lackawanna, Williamsville, East Aurora, Niagara Falls, Lockport, and North Tonawanda. Address: 3842 Harlem Rd STE 400-339, Cheektowaga, NY 14215. Phone: (716) 557-7005.