Last updated: February 2026
If you are behind on mortgage payments and worried about losing your home, you are not alone. Many homeowners experience financial hardship due to job loss, medical bills, divorce, rising living expenses, or other unexpected challenges. When this happens, people often begin searching for ways to stop foreclosure and find reliable foreclosure help. One option some homeowners explore is filing bankruptcy to stop foreclosure. Federal bankruptcy laws were created to provide individuals with a legal process to address serious financial difficulties, and in some situations, bankruptcy can provide temporary foreclosure assistance while homeowners evaluate their long-term mortgage relief options.
This article is designed to provide general educational information about how bankruptcy may affect foreclosure, what other foreclosure help options may be available, and how different types of mortgage relief programs work. The information below is not legal or financial advice. Every situation is different, and laws and procedures vary by state. Homeowners should consider speaking directly with a qualified attorney, housing counselor, or financial professional for guidance about their specific circumstances.
How Bankruptcy May Help Stop Foreclosure
Foreclosure is a legal process that allows a mortgage lender to take back a property when payments have not been made as agreed. After several missed payments, a lender may begin formal foreclosure proceedings, which can eventually lead to a foreclosure sale date. While the process can feel overwhelming, there are options that may help slow or stop foreclosure.
When a bankruptcy case is filed, a federal court order known as the automatic stay typically goes into effect. The automatic stay generally requires most creditors, including mortgage lenders, to pause collection activity while the bankruptcy case is pending. This pause can include temporarily stopping foreclosure actions. For some homeowners, this legal protection provides time to review finances and explore available mortgage relief solutions.
It is important to understand that bankruptcy does not automatically eliminate a mortgage or guarantee that a homeowner can keep a property. Bankruptcy is a legal process with specific requirements, and whether it provides meaningful long-term foreclosure help depends on individual financial circumstances.
Chapter 7 and Chapter 13 Bankruptcy: Understanding the Difference
Homeowners who look into bankruptcy as a way to stop foreclosure typically hear about two types of consumer bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy is primarily designed to address unsecured debts such as credit cards, medical bills, and personal loans. Filing Chapter 7 may temporarily stop foreclosure through the automatic stay, but it generally does not create a long-term plan for catching up on missed mortgage payments. For homeowners who cannot afford to keep the home, Chapter 7 may provide short-term foreclosure assistance while other options are considered.
Chapter 13 bankruptcy works differently. Chapter 13 involves a court-approved repayment plan that allows eligible homeowners to repay past-due mortgage amounts over a period of three to five years. While regular monthly mortgage payments must continue, Chapter 13 may provide a structured way to catch up on arrears. For some homeowners with steady income, Chapter 13 can be a form of foreclosure help that offers a path toward keeping the home. Qualification and results vary based on income, expenses, and court approval.
Potential Benefits and Limitations of Bankruptcy for Foreclosure Assistance
Filing bankruptcy to stop foreclosure may offer several potential benefits. The automatic stay can provide immediate, temporary protection from foreclosure activity. Bankruptcy may also address other debts that are making it difficult to afford housing costs, which can sometimes create room in a household budget for ongoing mortgage payments. In Chapter 13 cases, missed payments may be reorganized into a structured plan rather than requiring a single large payment.
However, bankruptcy also has important limitations. Filing bankruptcy affects credit and becomes part of the public record. Bankruptcy does not change the basic terms of a mortgage loan, and homeowners must still be able to afford payments going forward. If income is not sufficient to maintain the home even after other debts are addressed, bankruptcy may only delay foreclosure rather than prevent it. Court fees and legal expenses are also involved. Homeowners should carefully consider whether bankruptcy is likely to provide realistic, long-term mortgage relief before moving forward.
Other Options That May Help Stop Foreclosure
Bankruptcy is only one possible form of foreclosure assistance. Depending on your situation, there may be other mortgage relief options that do not involve filing bankruptcy. Understanding these alternatives can help you make informed decisions.
Loan Modification
A loan modification is a change to the original terms of your mortgage designed to make payments more affordable. This may include lowering the interest rate, extending the loan term, or adding missed payments to the end of the loan. For homeowners who can afford a reduced payment, a modification may be an effective way to stop foreclosure without legal action.
Repayment Plans and Forbearance
Some lenders offer repayment plans that allow borrowers to catch up gradually on missed payments. Forbearance programs may temporarily pause or reduce payments during periods of hardship. These programs can provide short-term foreclosure help, but homeowners should understand the long-term repayment requirements before agreeing to any plan.
Reinstatement
If you are only slightly behind, paying the total past-due amount and allowable fees by a specific deadline may stop foreclosure. This option is called reinstatement. It is most practical when homeowners have access to a lump sum of money through savings, tax refunds, or other sources.
Refinancing
In some situations, refinancing into a new loan may provide mortgage relief by lowering payments or restructuring the debt. Refinancing typically requires sufficient credit and income and may not be possible once payments are seriously behind.
Selling the Property
If keeping the home is no longer realistic, selling a home to avoid foreclosure may help protect credit and allow homeowners to preserve any available equity.
Short Sale
When a home is worth less than the amount owed, a lender may agree to a short sale and accept less than the full balance. A short sale can be a way to avoid a completed foreclosure, though lender approval is required.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure allows a homeowner to voluntarily transfer ownership of the property to the lender. While this does not allow you to keep the home, it may be an alternative to the formal foreclosure process in certain cases.
HUD-Approved Housing Counseling
HUD-approved housing counseling agencies provide free or low-cost foreclosure assistance. Counselors can help homeowners review budgets, prepare documents, and communicate with mortgage servicers about potential mortgage relief options.
Common Reasons Homeowners Face Foreclosure
Foreclosure can happen for many different reasons, and the best type of foreclosure help often depends on the cause of the problem.
Missed mortgage payments due to job loss or reduced income are the most common reason homeowners fall behind. In these situations, loan modifications, repayment plans, or Chapter 13 bankruptcy may be options worth exploring.
Past-due property taxes can also create foreclosure risk. Tax liens and penalties can grow quickly, and solutions may involve tax payment plans or local assistance programs rather than traditional mortgage relief.
Unpaid HOA or condominium association fees can lead to liens and legal action even when the mortgage itself is current. These cases often require early negotiation and prompt attention.
Defaults on second mortgages or home equity lines of credit can create foreclosure issues separate from the primary mortgage.
Divorce, separation, or inherited property complications sometimes lead to missed payments when financial responsibility is unclear.
Medical debt and credit card balances frequently contribute to foreclosure risk by reducing the money available for housing. Addressing those debts may be an important part of any long-term plan.
Understanding Foreclosure Trends in the United States
Foreclosure activity changes over time based on economic conditions. Recent national reports show that foreclosure filings have increased from historic lows but remain well below the levels seen during major housing downturns. In 2025, foreclosure filings were reported on roughly 367,000 properties nationwide, representing approximately 0.26 percent of all housing units. Overall mortgage delinquency rates have remained under four percent in recent periods. These statistics show that while foreclosure risk is real, many homeowners are able to find foreclosure help and mortgage relief before losing their homes.
Frequently Asked Questions
Can bankruptcy stop a foreclosure sale?
Filing bankruptcy generally triggers the automatic stay, which can temporarily stop foreclosure actions while the case is pending.
Which bankruptcy chapter is typically used to keep a home?
Chapter 13 bankruptcy is commonly used by eligible homeowners who want to catch up on missed payments over time.
Does bankruptcy guarantee I can keep my house?
No. Bankruptcy does not guarantee any specific outcome. Results depend on income, expenses, and court approval.
Are there options to stop foreclosure without bankruptcy?
Yes. Loan modifications, repayment plans, short sales, and other forms of mortgage relief may be available depending on your situation.
How quickly does foreclosure stop after filing bankruptcy?
The automatic stay generally begins as soon as a bankruptcy case is officially filed.
Important Terms
Automatic Stay – A court order that typically pauses foreclosure and most collection activity after bankruptcy is filed.
Chapter 7 Bankruptcy – A form of bankruptcy focused on unsecured debts that may provide temporary foreclosure assistance.
Chapter 13 Bankruptcy – A repayment-based bankruptcy that may allow eligible homeowners to catch up on missed payments.
Mortgage Arrears – The total amount of past-due mortgage payments and fees.
Trustee – The court official who administers a bankruptcy case.
Discharge – The legal elimination of qualifying debts through bankruptcy.
Helpful Resources
Homeowners seeking foreclosure help may find useful information through the U.S. Courts website, HUD-approved housing counseling agencies, state housing authorities, and local legal aid organizations. These resources can help you understand potential mortgage relief options and next steps based on your location and financial circumstances.
Taking the Next Step
Facing foreclosure can feel confusing and stressful, but options are often available. Filing bankruptcy to stop foreclosure is one possible form of foreclosure assistance, and there are many other mortgage relief programs that may also help. The best solution depends on your income, the amount you are behind, and your long-term goals. Exploring foreclosure help early can increase the chances of finding a workable path forward. If you are struggling with missed payments or worried about foreclosure, consider reaching out to a qualified professional to review your situation and learn what options may be available.
Important Notice and Compliance Disclosure: The information provided in this article is for general educational purposes only. It is not legal advice, financial advice, or a guarantee of any result. We are not a law firm, mortgage lender, or government agency. We do not provide legal representation or approve loan modifications. Laws, timelines, and eligibility requirements vary by state and by individual situation. If you are facing foreclosure or considering bankruptcy, you should speak directly with a licensed attorney, HUD-approved housing counselor, or qualified financial professional to discuss your specific options.