Last updated October 21, 2026
How a House Sells in a Florida Bankruptcy, Step by Step
Short answer: A bankruptcy home sale follows one of three paths. In Chapter 13 you sell and the court approves the sale; in Chapter 7 the trustee sells with a court-approved broker; after the case closes you sell like any owner. The steps below show who acts at each stage, so that the real estate never gets ahead of the court and the court never waits on the real estate.
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Key takeaways
- Every path starts with your bankruptcy attorney.
- Chapter 13: contract first, then the motion to sell, normally 21 days' notice, then the order.
- Chapter 7: employment order first, then marketing, contract, notice and the sale order.
- After the case closes: confirm the status, clear the liens, sell.
Informational purposes only. This is not legal or tax advice and no attorney-client relationship is created by reading it. PBP Real Estate, LLC is a licensed Florida real estate brokerage (License CQ1064615), not a law firm. We list and sell real estate; we do not advise on debts, on whether or how to file, on exemptions or on the bankruptcy case itself. Ask your bankruptcy attorney about your situation.
Chapter 13: how does a debtor's sale run?
You are the seller; the court approves the sale before closing.
| Step | Who acts | What happens |
|---|---|---|
| 1. Confirm the path | You and your bankruptcy attorney | Whether a sale fits the plan and what the court will need |
| 2. Price and list | Listing broker | Written opinion of value prepared by hand; listing agreement subject to court approval |
| 3. Market and log offers | Listing broker | Beaches MLS exposure; every offer recorded with date, price and terms |
| 4. Sign a contract | You and the buyer | Court-approval contingency from your attorney; closing date leaves room for the order |
| 5. Motion to sell | Your attorney | Contract and proposed order filed (S.D. Fla. Local Rule 6004-1); creditors normally get 21 days' notice |
| 6. Order | The court | Approves the sale; stayed 14 days unless the court orders otherwise (Rule 6004(h)) |
| 7. Closing | Title company | Liens and costs paid, commission as approved by the court, proceeds as the order directs |
Details: selling a house during Chapter 13.
Chapter 7: how does a trustee's sale run?
The trustee is the seller; the court approves the broker and the sale.
| Step | Who acts | What happens |
|---|---|---|
| 1. Equity review | Chapter 7 trustee | Is there value beyond liens, costs and exemptions? |
| 2. Employment application | Trustee's counsel, with the broker's Rule 2014 statement | Court asked to approve the broker (11 U.S.C. 327(a)) |
| 3. Employment order | The court | Broker may start; commission subject to court approval |
| 4. Secure, price, market | Broker | Condition photographed, written opinion of value, Beaches MLS listing, offers log |
| 5. Contract and sale motion | Trustee and counsel | Notice to creditors under section 363(b); sale may be free and clear of liens under 363(f) |
| 6. Order and closing | The court, then the title company | Liens paid, exemption paid as ordered, balance to the estate |
Details: when a Chapter 7 trustee sells.
After the case closes: what are the steps?
Confirm, clear, sell.
- Confirm the case is closed, not only discharged, and that nothing about the house is left in it.
- Clear the title: payoff letters for the mortgage and recorded liens, the discharge order and closing documents for the title company.
- Sell like any owner: price by hand from current closings, list, contract, close.
Details: selling a house after bankruptcy. The overview is on the bankruptcy home-sale hub.
Have Gia review the property
Tell us which path you are on and about the property. Gia Freer, our Broker of Record, reviews it personally and replies within one business day. No automated estimate is produced, and what you share stays confidential.
Have Gia review the property or call (561) 395-8418. Prefer to read first? See how we price a home.
General information from a licensed Florida real estate brokerage; it is not legal or tax advice. Ask your bankruptcy attorney about your case. We never pay attorneys or trustees for referrals.
Bankruptcy home sale steps: questions and answers
What is the first step to selling a house in bankruptcy?
A conversation with your bankruptcy attorney. Whether you can sell, who signs and what the court must approve depend on your chapter and your plan. Once your attorney confirms the path, the real estate steps can start: a written opinion of value, a listing agreement subject to court approval, and marketing.
Can the house be marketed before the court approves the sale?
In a Chapter 13 case, usually yes: the court approves the sale, not the listing, and the motion is normally filed once there is a signed contract. In a Chapter 7 or Chapter 11 estate sale, the broker starts only after the court approves the broker's employment.
What is the longest step in a bankruptcy home sale?
Usually the time between a signed contract and the order: normally 21 days' notice to creditors, a hearing if anyone objects, and a 14-day stay of the order unless the court waives it. Lien payoffs and association estoppels run in parallel so they do not add to it.
Sources and legal references
This page summarizes federal bankruptcy law, Florida law and court procedure for property owners. The primary sources are below; for your own case, rely on your bankruptcy attorney.
- 11 U.S.C. 363: Use, sale, or lease of property — Legal Information Institute, Cornell Law School
- 11 U.S.C. 1303: Rights and powers of a Chapter 13 debtor — Legal Information Institute, Cornell Law School
- 11 U.S.C. 327: Employment of professional persons — Legal Information Institute, Cornell Law School
- 11 U.S.C. 522: Exemptions — Legal Information Institute, Cornell Law School
- Federal Rule of Bankruptcy Procedure 2002: Notices — Legal Information Institute, Cornell Law School
- Federal Rule of Bankruptcy Procedure 6004: Use, sale, or lease of property — Legal Information Institute, Cornell Law School
- Federal Rule of Bankruptcy Procedure 2014: Employing professionals — Legal Information Institute, Cornell Law School
- U.S. Bankruptcy Court, Southern District of Florida (local rules, divisions) — United States Courts
- U.S. Trustee Program, Region 21 (Southern District of Florida trustees) — U.S. Department of Justice
- Florida Constitution, Article X, Section 4: Homestead; exemptions — The Florida Senate
- Florida DBPR license record: PBP Real Estate, LLC, real estate corporation CQ1064615 — Florida Department of Business and Professional Regulation
- Florida DBPR license record: Gia Freer, real estate broker BK689801 — Florida Department of Business and Professional Regulation
- Florida DBPR license record: Grant Freer, real estate broker BK3077984 — Florida Department of Business and Professional Regulation