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Selling a Florida Home While Going Through Bankruptcy: What Are Your Options?

Salim Omar

Can You Sell Your Home During Bankruptcy in Florida?

If you’re dealing with bankruptcy and own a home in Florida, you might be wondering what your options are. Can you sell your home? Will the bankruptcy court allow it? What about your mortgage debt, foreclosure risk, or any legal complications? These are valid concerns, and the good news is—yes, you can sell your home while in bankruptcy, but the process is more complex than a standard home sale.


Whether you’re going through Chapter 7 or Chapter 13 bankruptcy, understanding the legal process and knowing your best options can help you make an informed decision. Some homeowners choose to sell their property through a traditional listing, while others opt for a cash home sale, which is often faster and simpler. If avoiding foreclosure and reducing financial stress are top priorities, selling your house for cash in Florida might be the ideal solution.



This guide will walk you through the process, legal considerations, and why cash home buyers—like 904 Home Buyer—can make things easier when selling a house in bankruptcy.

Understanding Bankruptcy and Home Sales

Chapter 7 vs. Chapter 13: How It Affects Your Home Sale

Before you move forward, it’s crucial to know whether you’re in a Chapter 7 or Chapter 13 bankruptcy, as the rules for selling a home differ between them.

  • Chapter 7 Bankruptcy (Liquidation): Assets are typically sold to repay creditors. However, if you have homestead exemptions in Florida, your primary residence may be protected. Selling a home under Chapter 7 requires court approval, and proceeds may go toward repaying debts.
  • Chapter 13 Bankruptcy (Repayment Plan): You’re on a structured repayment plan that lasts three to five years. Selling a home during this process is possible, but you’ll need court approval, and the sale must align with your repayment plan.

Legal Considerations When Selling a Home in Bankruptcy

Do You Need Court Approval?

Yes, if you’re in bankruptcy, selling your home isn’t as simple as listing it on the market. You must file a motion with the bankruptcy court, explaining why you want to sell. The court will then decide whether the sale aligns with your financial situation and debt obligations.



If you’re considering a cash home sale, this can work in your favor because it speeds up the process. The sooner you complete the sale, the quicker you can settle debts and move forward.


Will Creditors Take the Proceeds?

In Chapter 7 bankruptcy, if your home isn’t exempt, proceeds from the sale could be used to pay creditors. In Chapter 13, funds from the sale may be used to restructure your repayment plan. Working with a real estate expert familiar with bankruptcy sales can help ensure you walk away with the best possible outcome.

Why Cash Sales Are the Easiest Option in Bankruptcy

Selling a home traditionally—through an agent, with showings, inspections, and waiting for buyer financing—can be a long and unpredictable process. In contrast, cash home buyers provide a faster, hassle-free solution.



Benefits of a Cash Home Sale in Bankruptcy:

  • No Waiting for Loan Approvals: Cash buyers don’t rely on bank financing, so sales close much faster.
  • Sell As-Is: Avoid costly repairs or upgrades—cash buyers purchase homes in any condition.
  • Faster Court Approval: Since cash transactions move quickly, it’s easier to get the court’s approval for the sale.
  • Avoid Foreclosure: If you’re at risk of losing your home, selling for cash can help you settle your debts and move forward without foreclosure on your record.

Real-Life Example: Selling a Florida Home in Bankruptcy

Take Lisa, a homeowner in Jacksonville. She filed for Chapter 13 bankruptcy but wanted to sell her home to relocate. Traditional listings weren’t working—buyers kept backing out, and she couldn’t afford repairs. 904 Home Buyer stepped in, offering a cash deal with a quick closing. With court approval, Lisa sold her home in under 30 days, paid off part of her debt, and had enough to start fresh.

Steps to Sell Your Florida Home During Bankruptcy

Step 1: Talk to Your Bankruptcy Attorney

Before making any decisions, consult your bankruptcy attorney to understand how selling will impact your case.


Step 2: Get Court Approval

File a motion to sell with the bankruptcy court. If you’re selling for cash, emphasize the quick closing and financial benefits.



Step 3: Find the Right Buyer

Traditional sales take time, and potential buyers might be hesitant about dealing with a bankruptcy sale. Cash home buyers like 904 Home Buyer simplify the process.


Step 4: Close the Sale

Once the court approves, you can close the sale and settle debts. A reputable cash buyer can help navigate this process smoothly.

Final Thoughts: Should You Sell Your Home During Bankruptcy?

Selling a home during bankruptcy isn’t always easy, but it’s entirely possible with the right strategy. Whether you’re facing foreclosure, need to relocate, or want financial relief, selling your Florida home—especially for cash—can be the best option.


If you’re considering a cash sale, 904 Home Buyer specializes in helping homeowners navigate financial hardships, providing fair offers and fast closings.



Need to sell your home fast while in bankruptcy? Contact 904 Home Buyer today to explore your options!

Salim Omar

Salim is a straight-talking CPA with 30+ years of entrepreneurial and accounting experience. His professional background includes experience as a former Chief Financial Officer and, for the last twenty-five years, as a serial 7-Figure entrepreneur.

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