Chapter 7 Bankruptcy: Selling Your House in California
In a California Chapter 7 bankruptcy, whether you keep your house depends entirely on how much equity sits above your homestead exemption.

In a California Chapter 7 bankruptcy, whether you keep your house depends entirely on how much equity sits above your homestead exemption.

Selling a house during an active Chapter 13 bankruptcy in California almost always requires a court-approved motion to sell before closing — here is what that process actually involves.

California’s homestead exemption shields a slice of your home equity from creditors. It is not the homeowners’ property tax exemption, and on a voluntary sale the automatic version protects nothing.

Bankruptcy puts a home into the bankruptcy estate, so the trustee and court shape any sale. Here is how that works for Orange County homeowners.

Short answer: Yes, selling a house during bankruptcy in California is usually possible, but you can’t do it alone. In Chapter 7 the trustee controls the sale, and in Chapter…
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