Selling a House in or After Bankruptcy in California
If you are facing bankruptcy — or coming out the other side of it — the question that keeps you up at night is usually about the house. Can you keep it? Can you sell it? Will the court take it? The honest answer is that it depends on a few things: which chapter you file, how much equity you have, and California's homestead exemption. The reassuring part is that there is a clear path forward in every case, and you are not the first person to navigate it.
This guide explains the basics in plain, supportive language. Because bankruptcy is a legal and financial process, treat this as general information — not legal or financial advice. A bankruptcy attorney, the U.S. Courts, and the California Courts should guide your specific situation.
Blue Sky Investment Holdings is a local cash buyer based in Fresno, owner-operated by Steve Gallegos, with 25+ years of experience and 500+ homes purchased across the Central Valley. We are not wholesalers — we are direct cash buyers who purchase as-is. Whether you need to sell during a case (with the court's approval) or after your discharge for a fresh start, we can move quickly and work within your timeline.
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Fill out this form to get your no-obligation all cash offer started!
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
Chapter 7 vs. Chapter 13
The two most common consumer bankruptcies treat your home differently. Per the U.S. Courts, Chapter 7 is liquidation: a trustee sells your nonexempt assets to pay creditors. You can usually keep your home if its equity fits within the homestead exemption and you are current on the mortgage. Chapter 13 is a three-to-five-year repayment plan that lets you keep your property and even catch up past-due mortgage payments — a key way people save a home.
California's Homestead Exemption
How much home equity you can protect comes down to California's homestead exemption under CCP § 704.730. It is the greater of your county's prior-year median home price or a statutory floor, up to a cap — and it is large. For 2026 it ranges from roughly the mid-$300,000s up to about $743,681, depending on your county, and it adjusts every year. Because it varies and changes, confirm the current figure for your county with a bankruptcy attorney.
Selling During a Case vs. After Discharge
Timing matters. While a bankruptcy case is open, you generally need the court's or trustee's approval to sell your home — a sale is not something you do on your own. A cooperative cash buyer who can close cleanly on the court's timeline makes that process smoother. After your discharge, you are free to sell, and an as-is cash sale can be a simple way to turn the page and move forward.
When the Trustee May Want a Sale
If your home equity is larger than the homestead exemption protects, the Chapter 7 trustee may decide to sell the home — paying you the exempt amount and using the rest for creditors. In that situation, a fast, reliable cash purchase can actually help: it gets the property sold efficiently so the case can move forward. We are used to working within these timelines.
How a Cash Sale With Blue Sky Works
- Call (559) 392-2243 or fill out the form. Tell us where you are in the process.
- We evaluate the home as-is — no repairs, no cleanup.
- You receive a fair all-cash offer, typically within 24 hours.
- If a case is open, we coordinate with your attorney and the court/trustee's approval; if discharged, you pick the date.
- We close cleanly so you can move forward.
Get a Cash Offer on a California Home
Call (559) 392-2243 or fill out the form. Tell us about the property and where you are in the process, and we will give you a fair cash number and a closing that fits your case — with no repairs, no commissions, and no obligation.
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
Blue Sky Investment Holdings buys houses throughout Fresno and the Central Valley — including Clovis, Madera, Visalia, Sanger, Selma, Merced, and beyond.