{"id":286966,"date":"2016-04-04T10:41:53","date_gmt":"2016-04-04T15:41:53","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/facing-foreclosure-how-bankruptcy-can-help.html"},"modified":"2026-08-04T09:57:21","modified_gmt":"2026-08-04T14:57:21","slug":"facing-foreclosure-how-bankruptcy-can-help","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/facing-foreclosure-how-bankruptcy-can-help.html","title":{"rendered":"Does Bankruptcy Stop Foreclosure?"},"content":{"rendered":"\n
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Does Bankruptcy Stop Foreclosure?<\/h1>\n\n
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\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Bankruptcy can temporarily pause foreclosure through an\u00a0automatic stay<\/span>\u00a0that halts creditor actions, including scheduled\u00a0foreclosure sales<\/span>. Chapter 13 gives you a structured path to address missed <\/span>mortgage payments<\/span> and potentially keep your home. Chapter 7 moves more quickly, but offers no mechanism for catching up on what you owe.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

The following is a breakdown of what bankruptcy can and can\u2019t do. The automatic stay<\/span> pauses foreclosure the moment you file, but that protection is temporary and may only delay foreclosure<\/span> rather than stop it. Chapter 13 may offer a longer-term solution by allowing you to catch up on your mortgage arrearage<\/span> through a repayment plan<\/span> or structured payment plan<\/span>. It may also allow you to keep your home. Chapter 7 can wipe out your mortgage debt<\/span>, but it doesn\u2019t remove the lender’s lien on the property or prevent a foreclosure sale<\/span> from proceeding once the stay lifts.<\/p>\n

If you are looking to stop a foreclosure or are facing bankruptcy proceedings, contact a bankruptcy attorney<\/span> near you<\/a>. They can review your financial situation and explain which chapter gives you the best chance of keeping your home.\u00a0<\/p>\n

How Foreclosure Works<\/h2>\n

Many Americans fall behind on their\u00a0mortgage<\/a>\u200b payments. Some lenders and\u00a0mortgage companies<\/span>\u00a0may be willing to work out deals with\u00a0homeowners<\/span> through a\u00a0short sale<\/span>\u00a0or a\u00a0loan modification<\/span><\/a>. Others may not be willing to offer these alternatives.<\/p>\n

If you fall behind on\u00a0mortgage payments<\/span>, a lender may begin the\u00a0foreclosure process<\/span> that\u2019s part of your mortgage contract. The\u00a0foreclosure process<\/span>\u00a0involves the creditor repossessing the house and selling it at a public auction. The\u00a0proceeds from that auction<\/a>\u200b will repay the mortgage and any legal costs.<\/p>\n

The\u00a0foreclosure process<\/span>\u00a0takes time. Most creditors rarely act the moment after a single payment is missed. Most arrears need to reach several months past due before a lender takes formal steps toward repossession. If you\u2019re a borrower, that gap gives you time to pursue other paths before foreclosure becomes inevitable. Common alternatives include:<\/p>\n