Can You Sell a House During Bankruptcy in Florida?

Chapter 7 vs. Chapter 13: Selling Your House

The type of bankruptcy you've filed determines who controls the sale and what approval you need:

In Chapter 7, a trustee controls your assets. If your home equity exceeds Florida's homestead exemption, the trustee may sell it to pay creditors. If it's protected by the exemption, you can sell with court permission and keep the proceeds. In Chapter 13, you keep your property but follow a repayment plan. Selling requires a motion to the court explaining why the sale benefits your plan and your creditors.

Florida's Homestead Exemption: Article X, Section 4

Florida's homestead exemption is written directly into the state constitution under Article X, Section 4. It's one of the strongest in the country. The exemption protects your primary residence from forced sale by creditors with unlimited value on properties up to:

• Half an acre inside a municipality
• 160 acres in unincorporated (rural) areas

There's one catch: the 730-day residency requirement. Under federal bankruptcy law (11 U.S.C. Section 522(b)(3)(A)), you must have lived in Florida for at least 730 days (2 years) before filing bankruptcy to claim Florida's unlimited homestead exemption. If you moved to Florida less than 2 years before filing, the exemption is capped at $214,000 (effective April 2025 through March 2028, adjusted every 3 years).

If your home equity is fully exempt, selling during Chapter 7 is a strategic move. You sell, keep the proceeds, pay your attorney, and use the cash to start fresh. The trustee has no claim to exempt proceeds.

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 refile the motion and start the process over, adding months of delay and potentially jeopardizing your bankruptcy case.

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 and judges prefer. Trustees especially value cash offers because they guarantee a specific amount will be available for creditor distribution without the uncertainty of financing contingencies.

Steps to Sell Your Home in Bankruptcy

1. 1Consult your bankruptcy attorney about selling. They'll determine whether a sale benefits your case and which motions to file.
2. 2Get a cash offer from FL Home Buyers. We provide a written offer the court can review, along with proof of funds.
3. 3File a motion with the court to sell the property. Your attorney handles the paperwork.
4. 4Court grants approval (typically 30-60 days). Creditors can object, but objections are rare when the sale price is fair.
5. 5Close on your timeline. We handle title issues, lien payoffs, and coordinate with your attorney. Max Cohen has worked with bankruptcy attorneys across Florida and knows the process inside and out.