Both Chapter 7 and Chapter 13 bankruptcy can slow down or stop a foreclosure, but they work very differently and offer very different outcomes for your home. Chapter 13 is generally the stronger option if keeping your home is your main goal. Chapter 7 can buy you time, but it does not fix the underlying mortgage problem. If you are behind on your mortgage and worried about losing your home in 2026, a Naperville, IL bankruptcy lawyer can help you figure out which path makes the most sense for your situation before it is too late.
How Does Bankruptcy Stop a Foreclosure?
The moment you file for bankruptcy, something called the automatic stay goes into effect. Under 11 U.S.C. Section 362, the automatic stay is a court order that immediately stops most collection actions against you, including foreclosure proceedings. Your lender cannot move forward with a foreclosure sale while the stay is active.