Which Type of Bankruptcy Can I File to Stop a Foreclosure?

Bankruptcy can stop a foreclosure on a debtor’s home. And when a debtor files for a form of reorganization bankruptcy, that debtor can stop the foreclosure proceeding from moving forward and can get caught up on mortgage payments so that they can remain in the property. In other words, if you are considering the possibility of bankruptcy, you do not need to lose your home to foreclosure. In general, it does not matter how far along the foreclosure proceeding has gotten, as long as your home has not yet been sold in a foreclosure auction. What type of bankruptcy can stop a foreclosure?

In short, all types of bankruptcy stop the foreclosure process, but reorganization bankruptcies stop foreclosure and give the debtor an opportunity to catch up on mortgage payments so that they can remain in their home. Our West Palm Beach bankruptcy lawyer can explain in more detail.

Foreclosure Process Stop As Soon As You File for Bankruptcy 

As soon as a debtor files for bankruptcy, an injunction called the automatic stay will stop any foreclosure process from moving forward. The automatic stay can stop the foreclosure process at any stage, whether you have recently entered into the pre-foreclosure process because of your lender’s actions, or litigation has already begun.

The role of the automatic stay is to halt all debt collection actions immediately. A creditor cannot move forward with any actions to collect from a debtor, including actions that would further a foreclosure proceeding. While all types of bankruptcy initially halt a foreclosure process from moving forward, not all types of bankruptcy give you an opportunity to remain in your home. Only a reorganization bankruptcy will work to do this.

Reorganization Bankruptcies and Saving Your Home from Foreclosure 

For most individual debtors (or married couples) who are at risk of losing their home to foreclosure, a Chapter 13 bankruptcy filing is the best type of bankruptcy to file if you are eligible. Most individual debtors who are “wage earners” (with a regular income) can file for Chapter 13 bankruptcy as long as their debts do not exceed the debt threshold. As of April 1, 2025 and up until March 31, 2028, you can file for Chapter 13 bankruptcy if your debt does not exceed $1,580,125 in secured debt and $526,700 in unsecured debt.

If your debts do exceed either of those amounts, you can still save your home from foreclosure through bankruptcy — typically by filing for Chapter 11 bankruptcy instead. Although this type of reorganization bankruptcy is more expensive and more complex than Chapter 13, it can often allow a debtor to save their home from foreclosure and remain in the property while catching up on debt with the mortgage servicer.

Contact Our West Palm Beach Bankruptcy Lawyers Today

If you are at risk of foreclosure and do not want to lose your home, you should find out about the possibility of filing Chapter 13 bankruptcy by speaking with one of the experienced West Palm Beach bankruptcy attorneys at Kelley, Fulton, Kaplan & Eller. Our firm has years of experience representing individuals in bankruptcy cases, including bankruptcies in which a primary motivation is to stop a foreclosure proceeding and allow the debtor to get back on track with mortgage payments. You do not need to lose your home to foreclosure, and our lawyers can help. Contact us today for additional information and to begin working on your bankruptcy filing.

Source:

law.cornell.edu/uscode/text/11/chapter-11