Most any bankruptcy can temporarily stop a foreclosure unless the debtor has filed too many previous bankruptcies. The Chapter 13 bankruptcy will stop the foreclosure and allow the debtor up to five years to catch up on the mortgage arrears. The debtor needs to file the Chapter 13 bankruptcy before the foreclosure sale takes place in order to stop it. Therefore it is best if the debtor contacts a bankruptcy lawyer as soon as possible once he receives a foreclosure notice in the mail.
The bankruptcy court will take into consideration the debtor’s income and reasonable living expenses when calculating the monthly Chapter 13 plan payment. The debtor will need to resume making the regular monthly mortgage payment the month after the bankruptcy is filed. After filing a Chapter 13 bankruptcy to stop a foreclosure, if the debtor misses a mortgage payment or a Chapter 13 plan payment, then the mortgage company may be granted relief to resume the foreclosure procedures