Last updated: March 2026
Sell Your House During Bankruptcy in Florida
Last updated: March 2026
Filing Chapter 7 or Chapter 13? You may need to sell your house fast to satisfy creditors or protect your homestead exemption. We buy Florida homes during bankruptcy as-is for cash. Close in 14-30 days with court approval.
Get My Cash OfferCan You Sell Your House During Bankruptcy in Florida?
Yes, you can. But it requires court approval. Whether you filed Chapter 7 or Chapter 13, the bankruptcy trustee controls your assets, and your home is one of them. Selling without permission violates the automatic stay and can get your case dismissed.
Here's what most people don't realize: selling your home during bankruptcy can actually help your case. It converts an illiquid asset into cash that can satisfy creditors. The trustee often supports the sale if the price is fair. And Florida's generous homestead exemption (unlimited value on up to half an acre in a municipality) means you may keep a significant portion of the proceeds.
Florida's Homestead Exemption Is Powerful
Florida offers one of the strongest homestead exemptions in the country. Under Article X, Section 4 of the Florida Constitution, your primary residence is protected from forced sale by creditors, with no cap on value. This means in many bankruptcy cases, selling your home lets you pocket the equity while satisfying other debts. We work with bankruptcy attorneys across Florida to structure these sales properly.
Bankruptcy Situations We Handle
Chapter 7 Liquidation
Assets are sold to pay creditors. If your home has equity above the exemption, the trustee may sell it. We can be the buyer, closing quickly to keep the case moving.
Chapter 13 Repayment
You keep assets but follow a repayment plan. Selling your home can fund the plan and let you downsize. Court approval required.
Pre-Filing Sales
Selling before filing can simplify your case. But timing matters. Transfers within 2 years of filing face scrutiny. We help structure arms-length transactions.
Post-Discharge Sales
After discharge, you may want a fresh start somewhere new. Selling your home after bankruptcy closes is straightforward. No court approval needed.
Why Selling During Bankruptcy Is Hard Traditionally
Traditional buyers get scared by the word bankruptcy. Their agents warn them about complications. Their lenders add extra requirements. And the court-approval process adds weeks to an already slow timeline.
The real problem is coordination. You need the trustee's approval, the court's blessing, a buyer who won't walk during the wait, and a closing that satisfies all parties. Traditional sales fall apart because buyers can't handle the uncertainty. Cash buyers like us don't have that problem.
We've Closed Dozens of Bankruptcy Sales
We work directly with your bankruptcy attorney and the trustee. We provide proof of funds immediately, submit our offer for court approval, and close as soon as the order is signed. No financing contingencies. No buyer cold feet.
Traditional Sale vs. Cash Sale During Bankruptcy
| Factor | Traditional Sale | Cash Sale to FL Home Buyers |
|---|---|---|
| Court Approval Timeline | Adds 30-60 days | We prepare the motion |
| Buyer Reliability | Buyers often walk | Cash, no contingencies |
| Attorney Coordination | You manage it | We handle directly |
| Closing Speed | 90-180 days total | 30-60 days total |
| Trustee Satisfaction | Uncertain | Proof of funds upfront |
How We Buy Homes During Bankruptcy
Contact Us With Your Situation
Tell us about your bankruptcy filing, your home, and your timeline. We'll ask about your attorney and trustee.
We Coordinate With Your Attorney
We work directly with your bankruptcy lawyer to structure the sale properly. We prepare documentation for the trustee.
Cash Offer + Court Motion
We make a fair cash offer and help prepare the motion for court approval. The trustee reviews and supports the sale.
Close After Court Approval
Once the court approves, we close within days. Proceeds are distributed according to the bankruptcy plan.
Real Example: Chapter 7 Sale in Fort Lauderdale
A homeowner filed Chapter 7 with $45,000 in equity above the homestead exemption. The trustee wanted to sell the home to distribute proceeds to creditors. Traditional buyers couldn't handle the court-approval timeline. We made a cash offer, coordinated with the trustee's attorney, and closed 8 days after court approval. Total process: 42 days from first call to closing.
Chapter 7 vs. Chapter 13: What It Means for Your Home Sale
Chapter 7 is a liquidation bankruptcy. A trustee takes control of your non-exempt assets, sells them, and distributes the cash to creditors. The whole process runs 3 to 6 months, and most debts are discharged about 60 days after the 341 meeting of creditors. If your home has equity that isn't protected by an exemption, the trustee will want to sell it. You can propose a buyer, but the trustee ultimately controls the sale price and terms.
Chapter 13 works differently. You keep your assets and repay creditors through a court-approved plan that lasts 3 to 5 years. Selling your home during a Chapter 13 case requires your attorney to file a motion to modify the plan, because the sale changes the math on what creditors receive. The court needs to see that the sale is still fair to everyone involved.
The practical difference for sellers: Chapter 7 moves faster but gives you less control. Chapter 13 gives you more flexibility, but every transaction needs court approval and potentially a plan amendment. Either way, we've handled both. We structure our offers to satisfy what trustees and judges look for, so the sale doesn't stall.
Florida's Homestead Exemption in Bankruptcy (Article X, Section 4)
Florida's homestead exemption protects your primary residence from creditors with no cap on value, as long as the property sits on half an acre or less inside a municipality (or up to 160 acres outside one). That's unusually generous compared to most states. A home worth $800,000 on a quarter-acre lot in Tampa is fully exempt, assuming you meet the residency requirement.
There's a catch. Under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), you must have owned and lived in the property for at least 1,215 days, roughly 3.3 years, to claim the full unlimited exemption. If you've been there less than that, your exemption is capped at $189,050 (adjusted periodically). This number determines how much of your home's equity you keep after a sale during bankruptcy.
Your bankruptcy attorney will calculate the exact exemption based on your filing date, residency timeline, and property value. We work with that number when structuring our offer so the trustee can confirm the sale benefits the estate.
Trustee Approval and Court Motion Timeline
Selling a home inside a bankruptcy case follows a specific legal path. Your attorney files a Motion to Sell with the bankruptcy court. Creditors then get a 21-day notice period to review the proposed sale and file any objections. If no one objects, the court can approve the sale on the papers alone. If a creditor does object, the judge schedules a hearing, typically 30 to 60 days from the original filing date.
The trustee wants to see three things before supporting the motion: a fair market appraisal or broker price opinion (BPO) showing the offer is reasonable, proof that the buyer has funds to close, and sale terms demonstrating the transaction is in the estate's best interest. We provide all three upfront. Our cash offers come with verified proof of funds, and because we don't rely on bank financing, there's no loan approval that can expire or fall through while the court process runs its course.
How Sale Proceeds Get Distributed
After the court approves the sale and closing happens, the proceeds don't just go into one account. Distribution follows a strict order set by federal bankruptcy law. Secured creditors, your mortgage lender, get paid first from the sale. Next comes the trustee's commission, which ranges from 3% to 25% of the distributed funds under 11 U.S.C. Section 326, with the percentage decreasing as the dollar amount increases.
After secured debt and the trustee's cut, priority unsecured claims get paid. These include recent tax obligations and domestic support obligations like child support or alimony. General unsecured creditors (credit cards, medical bills, personal loans) come next. Whatever remains after all claims are satisfied goes back to you, the debtor. In many Florida cases, the homestead exemption protects a large share of the equity, meaning you walk away with more than you might expect.
Questions About Selling During Bankruptcy
Can I sell my house during Chapter 7?
Yes, with trustee and court approval. The sale must be at fair market value. We provide proof of funds and close quickly after approval.
Does selling my house affect my bankruptcy?
It can help. Converting home equity to cash can satisfy creditors and potentially allow you to keep more assets under Florida's exemptions.
How long does court approval take?
Typically 30-45 days from motion filing to hearing. We prepare all necessary documentation to expedite the process.
Will I keep any money from the sale?
It depends on your equity and Florida's homestead exemption. In many cases, yes. Your bankruptcy attorney can calculate exactly what you'll keep.
Bankruptcy Doesn't Mean You're Stuck
Get a cash offer that works within your bankruptcy case. We coordinate with your attorney and the court.
We Handle This Situation in Every Florida County
See local market data and get a fair cash offer in your county: