Facing bankruptcy and unsure what to do with your house? Good news — you can legally sell house in Orlando during bankruptcy, under certain conditions. In this guide, we’ll explain how to protect your rights, meet court requirements, and take control of your financial future.
Table of Contents
- Can You Sell Your House During Bankruptcy in Florida?
- Selling a House in Chapter 7 vs. Chapter 13 Bankruptcy
- When Is the Best Time to Sell?
- Do You Need Court Permission?
- What Happens to the Proceeds?
- Selling With Equity vs. Underwater Homes
- How Cash Buyers Can Help During Bankruptcy
- FAQs About Selling Your Home in Bankruptcy
1. Can You Sell Your House During Bankruptcy in Florida?
Yes — but you must follow court procedures, especially if your bankruptcy case is still open.
If you’re filing for Chapter 7 or Chapter 13 bankruptcy, the home becomes part of the bankruptcy estate, and selling it will involve the bankruptcy trustee and court approval.
Still, thousands of Florida homeowners successfully sell their house during bankruptcy in Orlando every year — legally and without drama.
2. Selling a House in Chapter 7 vs. Chapter 13 Bankruptcy
Chapter 7 (Liquidation Bankruptcy)
- A trustee may sell your non-exempt assets to pay creditors.
- If you have significant equity in your home, you may lose it unless protected by Florida’s homestead exemption.
- Selling may require court permission if the trustee has control over your assets.
Chapter 13 (Debt Reorganization)
- You usually retain control of your home if you stay current on payments.
- Selling the house can be a strategic way to pay off debts or reorganize your repayment plan.
- Requires court approval and a modified plan proposal.
No matter which chapter you file under, it’s important to consult your bankruptcy attorney and follow all legal requirements when attempting to sell your home.
3. When Is the Best Time to Sell?
Timing matters. In general:
- Before filing: You have more control, but timing must not appear fraudulent.
- After filing, but before discharge: You need court permission.
- After discharge: You’re free to sell without restrictions — but by then, it may be too late to regain financial leverage.
If you’re considering selling, it’s often best to act early and with legal support.
4. Do You Need Court Permission to Sell?
Yes — in most cases, especially if you’ve already filed for bankruptcy.
To sell your house in Orlando during bankruptcy, you’ll typically need to:
- Notify your bankruptcy trustee
- File a motion to sell property
- Get the court’s approval for the sale terms
Once approved, you can move forward with the sale, but failing to follow procedure could void the transaction or lead to legal consequences.
5. What Happens to the Proceeds?
This depends on your equity, type of bankruptcy, and whether the home is protected under Florida’s homestead exemption.
Here are three common scenarios:
- Minimal equity + Chapter 7
Trustee may allow the sale, and you could walk away without owing. - Significant equity + Chapter 7
Equity may be used to repay creditors after homestead exemption applied. - Chapter 13
Sale proceeds may help you pay off your payment plan early or modify it.
It’s vital to work with your attorney to ensure you keep as much of your proceeds as legally possible.
6. Selling With Equity vs. Underwater Homes
If You Have Equity
Selling may help you:
- Avoid foreclosure
- Pay down debts
- Get a fresh start
If You Owe More Than It’s Worth (Underwater)
You still have options, including:
- Short sale (with trustee/court approval)
- Negotiating with the lender
- Selling to a cash buyer and handling the difference in bankruptcy proceedings
Regardless of your equity status, you don’t have to stay stuck.
7. How Cash Buyers Can Help During Bankruptcy
Selling your house in bankruptcy can feel overwhelming — but you don’t have to do it alone.
Frank Jr Buys Houses works directly with homeowners going through bankruptcy in Orlando. We offer:
- All-cash offers, fast
- No agent fees, commissions, or showings
- Close in as little as 7 days
- Coordination with your attorney and trustee
We’ve helped many Orlando residents sell their house during bankruptcy, legally and stress-free. Let us help you move forward.
8. FAQs About Selling Your Home in Bankruptcy
Can I sell my house without telling the court?
No. If you’re in an active bankruptcy case, you must disclose and get approval to sell any major assets, including your home.
What if my house is in foreclosure and I file bankruptcy?
Filing bankruptcy temporarily halts foreclosure (automatic stay). You may use this time to negotiate a sale — but act quickly.
How much equity can I keep when selling?
Florida’s homestead exemption protects up to 100% of equity in most cases, if the home is your primary residence and you’ve lived there long enough.
Can I sell to a family member?
Yes, but it must be arm’s length and fair market value — and still requires court permission.
What if my spouse co-owns the house?
Spousal ownership can complicate things, especially in divorce or joint bankruptcy filings. You’ll need legal coordination to proceed.
Final Thoughts: Regain Control of Your Financial Life
If you’re navigating the stress of bankruptcy, remember: you still have options.
Selling your house may not only be allowed — it may be the smartest move for a fresh start. But you need to do it right, with proper legal support and a buyer who understands the process.
Ready to Sell Your House During Bankruptcy in Orlando?
At Frank Jr Buys Houses, we specialize in helping Florida homeowners sell their homes fast, even during bankruptcy or foreclosure.
- We work with your attorney
- No repairs, no delays
- Local, experienced, and trusted
Get a free no-obligation cash offer. Or call us directly at (305) 775-8750