Louisiana situation guide · Updated November 2026

Wholesaling Bankruptcy Properties in Louisiana

Wholesaling bankruptcy properties in Louisiana means contracting for a Lafayette-area home owned by someone in bankruptcy, then assigning the deal to a buyer. The court or trustee generally has a say in the sale. Act 807 of 2026 (reported as effective August 1, 2026; confirm on legis.la.gov) also covers one-to-four unit homes. Start with our Chapter 13 guide.

Court approvalAct 807 disclosures100% online mentorship

Get the free starter kit Book a free call

Call/Text818-532-0481

Let’s find your starting point

Explore the mentorship.

Request a free fit call to discuss your goals and whether the program is right for you.

The short answer

Can you wholesale a bankruptcy property in Louisiana?

Sometimes. A sale by a debtor in bankruptcy usually needs trustee or court approval, so the contract should depend on it. Add Act 807 notices and get the debtor’s attorney involved early. Never sign a final deal without approval in writing from the right party.

A bankruptcy filing creates a court case that controls many of the owner’s choices. In a Chapter 13 case, the debtor often keeps the home and pays creditors through a plan. In a Chapter 7 case, a trustee may sell assets. Because the rules are federal, a Louisiana attorney who handles bankruptcy should guide every step. Our Chapter 13 and foreclosure guide gives background.

For you, the key points are timing and authority. A debtor may not be free to sign a binding sale without approval, and a sale may be reviewed by the trustee and the court. Build your contract so it only closes if approval comes. Check the comps and use the MAO calculator to see if the price still works after delay.

Bankruptcy Properties in Louisiana at a glance

Who may approve a sale	A trustee or the bankruptcy court, depending on the case
Common debtor chapters	Chapter 7 and Chapter 13
Who should guide you	The debtor’s bankruptcy attorney
Contract condition	Closing depends on written approval
Louisiana statute	Act 807 for residential property with 1 to 4 units
Deposit	Escrowed, and at least 1% of the price

The opportunity

Why bankruptcy sales appear in Lafayette

Lafayette Parish has a mix of older neighborhoods near the Saint Streets and Sterling Grove and newer suburbs toward Broussard, Youngsville and Scott. Energy-sector swings can strain household budgets, and some owners end up in a payment plan they cannot finish. A debtor who sells with approval may pay off the plan and keep leftover equity. Check current rules and prices, as they change.

Debtors under strain

A sale can end a plan that no longer fits. See our advice on finding motivated sellers.

Equity worth saving

Courts often like a sale that pays creditors in full. Compare it to a short sale.

Attorney-led files

Debtor attorneys know who needs a buyer. Read about working with attorneys.

Get the free starter kit See the mentorship

Lead sources

Where to find bankruptcy leads in Lafayette Parish

Bankruptcy attorneys. Lawyers who file consumer cases may have clients who need to sell.
Public court records. Federal filings are public. Pair them with foreclosure auction notices.
Foreclosure notices. A filing often follows a sheriff’s sale notice. See pre-foreclosure leads.
Owner outreach. Letters to owners behind on payments work. Try direct mail.
Trustee notices. Trustees sometimes look for buyers for estate assets.

Your exit

Who buys bankruptcy properties in Louisiana

Cash buyers and rehab investors who are patient with timing are the best fit. They will accept a longer closing in exchange for a discount. Tell them early that approval is a condition.

Pick a title company used to court-approved sales, such as an investor-friendly title company. If the debtor has little equity, a deed in lieu may be a different route, but ask counsel.

Book a free call

Step by step

How to start wholesaling bankruptcy properties in Louisiana

Confirm the case. Ask for the case chapter, the trustee and the debtor attorney.
Get approval rules. Ask the attorney what approval the sale needs and how long it takes.
Run the numbers. Use the ARV calculator and the MAO calculator.
Follow Act 807. Deliver the written disclosures and the LREC cancellation form first.
Condition the contract. Make closing depend on written court or trustee approval.
Escrow the earnest money. Use a Louisiana escrow account for the 1% minimum.
Close after approval. The closing agent pays creditors as the order directs.

Your checklist for wholesaling Bankruptcy Properties in Louisiana

Talk to the debtor’s bankruptcy attorney first.
Make approval a condition of closing.
Allow extra weeks for court timing.
Provide the Act 807 notices up front.
File every order and notice you receive.

A Louisiana example: a Lafayette homeowner in a Chapter 13 plan

Contract price	$142,000
Mortgage payoff	$98,000
Plan arrears	$11,500
Deposit in escrow	$1,420
Assignment fee	$10,500
Cash to the debtor	About $24,000 after costs

This is a worked example with illustrative numbers. A Lafayette homeowner near the Saint Streets filed Chapter 13 after losing overtime hours. The plan became too tight, and the owner wanted to sell and keep some equity.

The debtor’s attorney agreed to seek approval. Your offer was $142,000, with the Act 807 notice, the LREC form and $1,420 in escrow. The contract said closing depended on written approval.

Approval came about seven weeks later. A buyer paid you a $10,500 fee. The closing agent paid the mortgage and the plan balance, and the owner received about $24,000.

Louisiana rules to know

Court approval, Act 807 and licensing

Bankruptcy is governed by federal law, and this page does not cover it in detail. In general, a debtor’s ability to sell depends on the case type and the court. A trustee may have authority over some sales. Ask the debtor’s attorney to confirm the rules, and never pay or promise money in a way the court has not approved.

Wholesalers in Louisiana answer to Act 807 of 2026 as well. The seller must be told in writing that you plan to resell the contract at a profit and should get legal advice, and may cancel for at least five calendar days. Penalties of up to $5,000 per violation can apply. Check the current text and our license guide.

Learn it with a mentor

Work alongside attorneys

Bankruptcy files move on a court calendar. We help students set realistic timelines and ask the right questions.

See the course See the mentorship

FAQ

Bankruptcy Properties in Louisiana: common questions

Is wholesaling bankruptcy properties in Louisiana legal?

It can be, once the debtor has whatever approval the case requires and you meet Act 807 and the license rules. This is not a field for guessing. Read the current statute, and have a Louisiana attorney review the contract before anyone signs.

Can a debtor in bankruptcy sell a house?

Often yes, but usually with approval. In some cases a trustee or the court must approve the sale, and the debtor’s attorney knows the steps. Make your contract conditional on that approval so no one is bound before it arrives.

What is the difference between Chapter 7 and Chapter 13?

In general, Chapter 7 can involve a trustee selling assets, while Chapter 13 often lets the debtor keep property and pay creditors through a plan over time. Details depend on the case. The debtor’s attorney can explain which one applies.

How long does approval take?

It varies by court and case, often several weeks. Build extra time into your contract and avoid fixed dates that depend on approval. Ask the debtor’s attorney for a realistic range before you offer, and keep your buyer informed about the schedule.

Do I need to pay a deposit?

As the Act reads, each wholesaling contract needs a deposit of at least 1% of the purchase price, held in escrow in Louisiana or in the seller’s account. Check current text, and make sure the bankruptcy approval covers how the deposit is handled.