What a filing does to the sale
Filing a Chapter 13 case before the foreclosure sale generally triggers the automatic stay, which stops the sale from going forward while the case is pending. The filing has to happen before the sale is completed; once a property is sold, the options narrow considerably. If you had another bankruptcy case dismissed recently, the stay may be shorter or may not arise automatically, and you would need to ask the court for protection quickly. Chapter 13 is available to individuals with regular income whose debts fall within set limits, so it is not a tool for a company that holds title to the home. In New York, foreclosure on a home is a court case, and the bankruptcy filing pauses that case along with the referee's sale.
How the missed payments get handled
A Chapter 13 plan generally lets you pay the mortgage arrears over the life of the plan while you resume making regular monthly payments as they come due. Both parts matter, because falling behind on the ongoing payments after filing is a frequent reason lenders ask the court to lift the stay. The lender files a claim stating what it says is owed, and that figure, including fees and charges, can be reviewed and challenged. Gather your mortgage statements, the foreclosure papers, recent pay stubs or proof of other income, tax returns, and a realistic household budget. A plan built on income you cannot sustain tends to fail partway through rather than at the start.
Whether this route fits
Chapter 13 bankruptcy to stop foreclosure works when the problem is a gap you can close over time, not a payment you can never afford. If the mortgage itself is beyond your means, a loan modification, a sale, or another strategy may serve you better, and a filing can sometimes be combined with loss mitigation talks with the lender. Co-owners and co-borrowers who do not file have their own considerations. In a first meeting we review the foreclosure status and sale date, your income and other debts, and whether the plan payment would actually be manageable.
