Last updated: February 2026
Can You Sell a House During Bankruptcy in Florida?
Last updated: February 2026
Quick Answer
Yes, but you need bankruptcy court approval. In Chapter 7, the trustee may sell the property to pay creditors unless it's protected by Florida's unlimited homestead exemption. In Chapter 13, you can request court permission to sell. Cash buyers can close quickly once approval is granted.
Chapter 7 vs. Chapter 13: Selling Your House
In Chapter 7 (liquidation), a trustee controls your assets. If your home equity exceeds Florida's homestead exemption, the trustee may sell it. If protected by the exemption, you can sell with court permission and keep the proceeds. In Chapter 13 (reorganization), you keep your property but follow a repayment plan. Selling requires a motion to the court explaining why the sale benefits your plan. Both processes typically take 30-90 days for approval.
Florida's Homestead Exemption Advantage
Florida has one of the most generous homestead exemptions in the country — it's unlimited in value for properties on half an acre or less in a municipality (160 acres in rural areas). This means if you've lived in your home for at least 2 years, your entire home equity may be protected from creditors in Chapter 7. This makes selling strategically important: you can sell, keep the proceeds, and use them to start fresh.
Why Cash Buyers Work Best in Bankruptcy
Bankruptcy sales have strict timelines and court oversight. Traditional buyers with financing contingencies create risk — if their loan falls through after court approval, you have to restart the process. Cash buyers eliminate financing risk entirely. We can close within days of court approval, meet court-imposed deadlines, and provide the certainty that bankruptcy trustees prefer.
Steps to Sell Your Home in Bankruptcy
1. Consult your bankruptcy attorney about selling. 2. File a motion with the court to sell the property. 3. Get a cash offer from FL Home Buyers (we provide a written offer the court can review). 4. Court grants approval (typically 30-60 days). 5. Close on your timeline. We handle title issues, lien payoffs, and coordinate with your attorney to make the process smooth.
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