Bankruptcy and Foreclosure
The stay, Chapter 13 arrears, and keeping a home
Last updated September 18, 2026
Short answer
A bankruptcy filing generally stays a foreclosure, including many sales that have been scheduled but not yet completed. Chapter 13 is the chapter most often used to catch up mortgage arrears over time. Chapter 7 may delay a sale but does not by itself create a plan to cure the default. Timing is critical.
Foreclosure is governed by state property law and federal bankruptcy law together. Alabama and Georgia both use non-judicial foreclosure in many cases, with different notice rules. Section 362 can stop the sale after filing. Curing arrears usually requires Chapter 13 and a confirmable plan (11 U.S.C. § 1322).
Stay vs. cure
The stay can stop the sale. Keeping the home long-term still requires a strategy for the loan: stay current, catch up arrears, or surrender. See Can bankruptcy stop foreclosure? and Chapter 13 and foreclosure.
In this section
- Automatic Stay and Foreclosure Sales — Automatic Stay and Foreclosure Sales
A pending foreclosure is a classic stay event. If an in rem stay-relief order was entered in a prior case against the property, a new filing may not stop the sale. Confirm prior-case history before relying on the stay.
- Can Bankruptcy Stop Foreclosure? — Can Bankruptcy Stop Foreclosure?
If the foreclosure sale has not been completed, filing usually triggers the automatic stay and stops the sale. If the sale already occurred, bankruptcy rarely unwinds it. Catching up the loan generally requires Chapter 13 or another loss-mitigation path—not Chapter 7 alone.
- Chapter 13 Bankruptcy and Foreclosure — Chapter 13 Bankruptcy and Foreclosure
Chapter 13 is the chapter designed to save a home when you are behind. The plan can cure the default over a reasonable time and require ongoing regular payments. Feasibility (income vs. expenses) still has to work. Confirmation is not automatic.
- Mortgage Arrears in Bankruptcy — Mortgage Arrears in Bankruptcy
Arrears are more than missed principal and interest. Servicers add fees, inspection costs, and escrow shortages. A Chapter 13 plan has to account for the real number, which often appears on a proof of claim after filing.
How Brock & Stout can help
We review sale dates, mortgage statements, and HOA or tax issues; explain how the stay may affect a pending foreclosure; and evaluate whether Chapter 13 can address arrears. We prepare and file when you decide to proceed. We cannot guarantee that a sale will be stopped or that a mortgage will be reinstated.
Facing an urgent debt problem?
Talk with a bankruptcy attorney about garnishment, foreclosure, repossession, or a lawsuit. A consultation can explain options. It does not guarantee a particular result.
This page is general educational information about bankruptcy as of the date shown. It is not legal advice, does not create an attorney-client relationship, and does not guarantee results. Outcomes depend on individual facts and current federal and state law. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
