If you've received a notice of default or a foreclosure date is approaching, bankruptcy may be able to stop it immediately — and give you a structured way to catch up.
The moment a bankruptcy petition is filed — whether Chapter 7 or Chapter 13 — federal law imposes what's called the "automatic stay." This is a court order that requires your lender (and every other creditor) to immediately stop collection activity, including a scheduled foreclosure sale. If a sale is scheduled for next week, filing before that date can stop it.
The automatic stay is temporary relief, though — it buys time, but it doesn't by itself resolve the underlying default. What happens next depends on which chapter you file and what you do with that time.
The automatic stay takes effect the moment your case is filed — not when paperwork is finalized days later. If a foreclosure sale date is approaching, don't wait. Call us so we can assess whether an emergency filing is appropriate for your situation.
Chapter 13 is specifically designed for homeowners who've fallen behind but want to keep their property. Through a court-approved repayment plan lasting three to five years, you can catch up on missed mortgage payments gradually — while staying current on new payments going forward.
As long as you make your plan payments, the lender cannot foreclose. At the end of the plan, your mortgage is current and the home is yours, free of the arrears that triggered the crisis.
Chapter 7 triggers the same automatic stay, which can delay a foreclosure sale by the weeks or months the case is open. But Chapter 7 doesn't include a repayment mechanism for mortgage arrears — so unless you can otherwise become current, the stay is usually temporary. For homeowners who genuinely want to keep the property, Chapter 13 is typically the better fit.
Notices of default and trustee sale notices have real deadlines. The earlier you act, the more options remain available to you.
Recent mortgage statements, the notice of default or sale, your income information, and a list of other debts help us assess your situation quickly.
We'll review your numbers and tell you honestly whether Chapter 13 can save your home — and what the realistic repayment plan would look like.
If Chapter 13 is the right fit and time is short, we move quickly to get the automatic stay in place before a scheduled sale.
Call now for a free, confidential evaluation of your options — including whether bankruptcy can stop your foreclosure.
310.820.3800This article is provided for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship between you and Westwood Law Center. Legal advice must be tailored to the specific facts of your situation — nothing in this article should be relied upon as a substitute for consultation with a licensed attorney. The information here may not reflect the most current legal developments. If you have a legal issue, contact our office for a free consultation.
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