Yes, usually for a time: filing a bankruptcy petition creates an automatic stay that pauses a foreclosure, including a scheduled sale, but only Chapter 13 lets you catch up on missed mortgage payments through a plan of three to five years, and the lender can ask the court to lift the stay.
This is general information, not legal advice. Bankruptcy has lasting effects, and your state's law and your loan documents matter, so talk to a bankruptcy attorney before you file.
What to know first
- The stay starts when you file. It pauses acts to enforce a lien on your house, in Chapter 7 and Chapter 13 alike.
- Chapter 13 can save the house. A plan can cure the missed payments, as long as you file before the foreclosure sale and keep paying the regular mortgage.
- Chapter 7 usually only delays. There is no plan to catch up, and a discharge does not remove the lien on the house.
- Repeat filings are limited. A case dismissed in the past year can shorten the stay to 30 days or stop it from starting.
How does bankruptcy stop a foreclosure?
Filing a bankruptcy petition operates as an automatic stay. Among other things, it stops acts to create, perfect, or enforce a lien against property of the estate, which generally pauses a foreclosure, including a sale already on the calendar (11 U.S.C. 362(a)). The stay comes from the filing itself, in every chapter.
The stay has limits under the same section of the Bankruptcy Code:
- A lender can ask the court for relief from the stay for cause, such as a lack of adequate protection of its interest (section 362(d)(1)).
- If you had one case dismissed in the past year, the stay ends on the 30th day after the new filing, unless the court extends it (section 362(c)(3)).
- If you had two or more cases dismissed in the past year, the stay does not take effect when you file (section 362(c)(4)).
Before you can file under any chapter, you generally must receive credit counseling from an approved agency within 180 days before filing (U.S. Courts).
Chapter 7 versus Chapter 13: which one stops foreclosure?
Both chapters start the automatic stay. The difference is what happens to the missed payments and the house after that.
| Question | Chapter 7 | Chapter 13 |
|---|---|---|
| What it is | A trustee sells nonexempt assets to pay creditors (U.S. Courts) | A plan to repay all or part of your debts over time (U.S. Courts) |
| Does filing pause the foreclosure? | Yes, through the automatic stay (11 U.S.C. 362(a)) | Yes, through the automatic stay (11 U.S.C. 362(a)) |
| Can you catch up on missed payments? | No repayment plan; the courts describe catching up as an advantage of Chapter 13 (U.S. Courts) | Yes, a plan can cure the default within a reasonable time (11 U.S.C. 1322(b)(5)) |
| Deadline to use it | The stay pauses the foreclosure; once it ends, the lender can usually resume | Until the house is sold at a foreclosure sale under state law (11 U.S.C. 1322(c)(1)) |
| What happens to the mortgage lien? | A discharge does not extinguish a lien on property (U.S. Courts) | You keep making the regular mortgage payments that come due after filing (U.S. Courts) |
| How long it runs | No repayment plan | Three years, or five if your income is above your state's median (U.S. Courts) |
| Can the lender ask to lift the stay? | Yes, for cause (11 U.S.C. 362(d)) | Yes, for cause (11 U.S.C. 362(d)) |
Which chapter you can use depends on your income, your debts, and your goals. A bankruptcy attorney can explain which one fits, and what each would mean for your credit and your other property.
When is it too late for bankruptcy to stop a foreclosure?
Timing matters most. A Chapter 13 plan can cure a default on your principal residence only until the house is sold at a foreclosure sale held under state law (11 U.S.C. 1322(c)(1)). The U.S. Courts note that a debtor may still lose the house if the foreclosure sale is completed before the petition is filed (U.S. Courts). If a sale has already happened, ask a lawyer in your state what, if anything, your state allows.
Our guide to when it is too late to stop foreclosure walks through each stage of the process and the options still open at each one.
What else can stop a foreclosure?
Bankruptcy is one option among several. A repayment plan, forbearance, a loan modification, reinstatement, or a sale of the house can also end or pause a foreclosure, depending on how much time is left. Our guide to how to stop foreclosure covers each one, in order of the time it needs.
Free help is available. A HUD-approved housing counselor can review your options and talk to your servicer at no cost.
If you decide to sell instead, Propcash is a direct cash homebuyer that can make one no-obligation cash offer, with the reasoning shown and no fees to you. See selling a house in foreclosure or behind on payments.
Common questions about bankruptcy and foreclosure
Does bankruptcy stop foreclosure?
Usually for a time, yes. Filing a bankruptcy petition creates an automatic stay that pauses acts to enforce a lien on your house, including a scheduled foreclosure sale. The lender can ask the court to lift the stay, and repeat filings within a year get a shorter stay or none.
Does Chapter 7 stop foreclosure?
It can pause one, because the automatic stay applies in Chapter 7 too. But Chapter 7 has no plan to catch up on missed payments, and a discharge does not remove the lien on your house, so the lender can usually resume once the stay ends. A bankruptcy attorney can tell you what that means for your loan.
Does Chapter 13 stop foreclosure?
Yes, and it can do more than pause it. A Chapter 13 plan can cure a default on your principal residence over time, as long as the case is filed before the house is sold at a foreclosure sale. You must also keep up the regular mortgage payments that come due after you file.
How long does the automatic stay last?
Generally until the case is closed, dismissed, or a discharge is granted or denied, unless the court lifts it sooner. A lender can ask for relief for cause, such as a lack of adequate protection of its interest. If you had a case dismissed in the past year, the stay may last only 30 days or not start at all.
Can bankruptcy stop a foreclosure sale that is already scheduled?
Usually, if you file before the sale is held. The stay starts when the petition is filed, and a Chapter 13 plan can cure the default until the house is sold at a foreclosure sale. Once the sale has happened, a bankruptcy filing generally cannot undo it, so talk to a bankruptcy attorney as early as you can.
Get a cash offer, with no obligation
If selling is one of the paths you are weighing, you can request a cash offer. The offer is free, there is no obligation, and you can compare it with the options from your attorney, your servicer, and your counselor.
Published by Propcash, a direct cash buyer of houses. Sources checked November 6, 2026. Bankruptcy law is federal, but your state's law and your loan documents also affect your situation.