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Can bankruptcy stop a foreclosure sale?
Often, if the bankruptcy case is filed before the foreclosure sale and the automatic stay applies. Chapter 13 can then provide a mechanism to cure mortgage arrears over time.
Timing is everything
The automatic stay generally stops foreclosure activity when a bankruptcy petition is filed. But a filing after the foreclosure sale may be too late to use the ordinary Chapter 13 cure provisions.
11 U.S.C. § 1322(c)(1) allows a default on a principal residence to be cured until the residence is sold at a foreclosure sale conducted under applicable nonbankruptcy law.
Chapter 7 vs. Chapter 13
Chapter 7 can create a temporary stay, but it usually does not create a multi-year mechanism for curing mortgage arrears. Chapter 13 is the chapter commonly used to maintain ongoing mortgage payments while curing the prepetition default through the plan.
Bankruptcy does not erase the mortgage lien
A discharge can affect personal liability, but a valid mortgage lien generally remains attached to the property. Keeping the house normally requires a workable plan for the secured debt.
Repeat filings can change the stay
If one or more bankruptcy cases were dismissed within the preceding year, §§ 362(c)(3) and (c)(4) can limit or prevent the normal automatic stay. Tell the lawyer about every recent filing before relying on bankruptcy to stop a sale.
If a trustee sale is scheduled, lead with the date and time. Do not bury it in the last paragraph of an email.
Legal references: 11 U.S.C. §§ 362, 1322(b)(5), 1322(c)(1).
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General information only; not legal advice. Bankruptcy outcomes depend on the facts, timing, chapter, creditor documents, and applicable law. Last reviewed August 2026.