Alex Silva is a broker, not an attorney. He lists and sells the home while your attorney handles the court. In Chapter 7, the trustee chooses the broker, with the court’s approval.
Selling your house in Chapter 7 or Chapter 13
Chapter 7
- The Chapter 7 trustee, who manages your case, can sell property that isn’t protected (exempt) to pay creditors.
- The trustee, not you, controls the sale.
- If a sale wouldn’t leave money for creditors, the trustee may release the home back to you (called “abandoning” it).
Chapter 13
- You usually stay in charge of the sale, but your attorney generally files a “motion to sell” for the court to approve.
- Your Chapter 13 trustee reviews the motion and can object.
- The proceeds may go toward your plan, which may need to change.
Talk to your bankruptcy attorney before you list or accept an offer. Selling without approval can put your case at risk.
How a court-approved sale works
- Start with your attorney.Alex asks your attorney what the court needs before listing.
- Price it and write the contract.A comparative market analysis supports the price. The contract usually says the sale needs court approval.
- Leave time before closing.Creditors generally get at least 21 days’ notice of the sale. After the approval order, closing waits 14 days. The court can change either, so ask your attorney for your likely timeline.
Short sales during bankruptcy
Bankruptcy can end your personal duty to pay the mortgage. But the lender’s lien, its legal claim on the house, generally stays until it’s paid or released. So if the price is less than you owe, the sale generally needs the lender’s approval as well as the court’s.
In Chapter 7, the trustee runs the sale unless the home was released back to you.
Debt canceled by the court or under a court-approved plan in your bankruptcy case generally isn’t taxable income. Ask a CPA whether the balance a lender forgives in a short sale qualifies.
Alex Silva, broker
Voyance Real Estate is led by its broker and owner, Alex D. Silva, who has more than 30 years in real estate and holds Florida broker license BK3153327.
Short-sale negotiation is his specialty: lender approvals, second liens, and valuation disputes.
He works with homes, condos, rentals, and commercial property across Central and South Florida, in English, Spanish, and Portuguese.
Bankruptcy sale questions
Does Florida’s homestead exemption protect my house in bankruptcy?
It can, if you or your family live there. There’s no dollar limit, but there is a land limit: half an acre in a city or town, or 160 acres outside one. It doesn’t protect you from your mortgage lender. Other limits can apply, for example if you got the home within about 3.3 years before filing or moved to Florida within two years of filing. Ask your attorney.
Can my lender still foreclose while I’m in bankruptcy?
Filing generally pauses foreclosure (the “automatic stay”), but the lender can ask the court to lift it. Ask your attorney about timing. If a foreclosure moves ahead, read about selling before the foreclosure sale.
Should I sell my house before I file for bankruptcy?
Alex can’t advise on that. Ask a Florida bankruptcy attorney.
Official sources: Chapter 7 basics · Chapter 13 basics · Florida Bar lawyer referral · IRS Publication 4681
General real estate information, not legal, tax, or financial advice.
In bankruptcy and thinking about selling?
Tell Alex your chapter, your attorney’s name, and what you owe.