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Chapter 13 can stop a foreclosure sale and let you catch up on missed payments. Learn when to file and what happens to your home.
Foreclosure moves faster than most homeowners expect — timelines vary by state, but missed mortgage payments can trigger a foreclosure sale in as little as a few months. Once the sale happens, getting the home back is nearly impossible. Bankruptcy is the most powerful tool for stopping foreclosure — and it works even when the sale is scheduled for the next day.
The moment you file, the automatic stay halts the foreclosure process. What happens next depends on which chapter you file. Chapter 13 is the standard choice for keeping your home, because it lets you catch up on missed payments over 3–5 years. Chapter 7 provides temporary relief but doesn't solve the underlying default — it only works if you can get fully current on payments after filing.
Most homeowners use Chapter 13. Chapter 7 can buy time but usually isn't a long-term fix for mortgage arrears.
Chapter 13 lets you roll your missed mortgage payments into a 3-to-5-year repayment plan while keeping your regular monthly mortgage payment current. The foreclosure is dismissed, and as long as you make your plan payments and stay current on new mortgage payments, you keep the home.
Chapter 7 stops the foreclosure sale immediately but doesn't create a way to catch up on missed payments. If you can't get fully current on the mortgage during the case (3–6 months), the lender will seek permission to resume foreclosure. Chapter 7 works for foreclosure only when your cash flow has already recovered.
Chapter 13 must be filed before the foreclosure sale to stop it. If you've received a sale date, call immediately — we can often prepare and file within 24–48 hours when necessary.
The automatic stay takes effect instantly. The foreclosure sale is legally prohibited from proceeding, and the lender must remove the property from auction.
Your attorney proposes a plan that rolls mortgage arrears (plus interest and fees) into monthly plan payments spread over 3–5 years. You continue making your regular mortgage payment on top.
As long as you make your plan payments and stay current on the regular mortgage, the lender cannot foreclose. When the plan completes, the arrears are fully cured and you own the home as if you'd never missed a payment.
You can file right up until the gavel falls at the sale, but earlier is always better. Same-day filings are possible but leave no margin for error. If you know the sale date, call as soon as you can — we can often prepare in days.
Only if you miss plan payments or fail to stay current on your post-filing mortgage. In that case, the lender can ask the court for "relief from stay" and resume foreclosure. As long as you make the payments, you're protected.
Repeat filings can limit the automatic stay to 30 days (or no stay at all) unless your attorney petitions the court for an extension. It's still possible to save the home, but the attorney needs to know about any prior filings at the very first consultation.
Yes. You don't need to wait until foreclosure is imminent. If you can see a default coming — job loss, medical event, other hardship — filing Chapter 13 proactively is often easier than filing in a rush.
Timing is everything with foreclosure. We can often file within 24–48 hours to stop a scheduled sale. Call now.