September 9, 2015


Bankruptcy may be used to help people faced with a pending foreclosure.  Chapter 13 is a type of personal bankruptcy that can often be used to stop the foreclosure process and provide the property owners time in order to pay back the amounts they are behind.

The Foreclosure Process

A foreclosure typically occurs after a homeowner has fallen behind on mortgage payments for a number of months.  Foreclosure basically means that the home or real estate is going to be sold at a public auction.  The homeowner will receive notification of the approaching sale as part of the process.  Once you receive notice of the pending foreclosure sale, you should review your chapter 13 bankruptcy options as a possible means of avoiding foreclosure and curing the arrears you owe to the lender over a period of time.  It is important to act quickly if you do receive a notice of a pending foreclosure sale to ensure that you are fully aware of your options. 

If you do decide to file a chapter 13 to stop foreclosure, the proceeding must be filed prior to the foreclosure sale date.  Once the foreclosure sale is held, it is not possible to unwind or void the sale through bankruptcy. 

When a chapter 13 proceeding is filed, the bankruptcy court automatically issues an order for relief from creditor collection, including foreclosure.  This results in something often referred to as the “automatic stay.”  The automatic stay requires all creditors to immediately stop all collection activities.  This includes all collection efforts, including phone calls, letters, lawsuits, garnishments, and foreclosure.



Have questions? Check out our FAQ's

Will bankruptcy stop Lawsuits?

Can I keep my 401k?

When do I need to file for bankruptcy?

How do I rebuild my credit?

Will I lose my house or car?


Our Focus

We represent businesses and owners anticipating or experiencing financial distress.

Approach to Law

We counsel clients so that their resources and assets are marshaled for corporate and individual protection.

Learn More