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Can a home be sold after filing Chapter 7 bankruptcy?

If you have filed for a Chapter 7 bankruptcy in Fort Lauderdale, Florida, to get a fresh financial start, you are typically allowed to keep your home. Florida state law says that it is exempt from being sold under process of the bankruptcy court, unless it is to pay taxes on the property itself. While a creditor does not have the ability to force you to sell your home to collect on a debt, it may also be difficult for you to sell it yourself. When this is something you feel is necessary, you must abide by certain limitations placed on the sale by the court.

According to, the court must grant approval for you to sell your home. To get permission, you must file a motion to sell real property. This formal motion filed with the bankruptcy court must have all the information relevant to the sale, including the following:

  •          Selling price
  •          List of creditors with liens on the property
  •          How the proceeds of the sale will be used

If your court-appointed trustee believes the home should be sold in order to pay creditors, he or she is under the same obligation to provide all the relevant information to the court pertaining to the sale. The trustee also has the responsibility to prove that the sale will not be detrimental to you. However, since most homestead properties are exempt under Florida law, it is unlikely that the trustee will request the sale except in rare circumstances. The information provided about home sales during a Chapter 7 bankruptcy is for educational purposes only. It is not intended to be interpreted as legal advice.

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