A legal filing that stops the foreclosure sale date immediately — but comes with serious long-term consequences you need to understand before proceeding.
Most bankruptcy attorneys offer free initial consultations. You need an attorney — this is not a DIY process. Search "Chapter 13 bankruptcy attorney [your city]" and book 2–3 free consultations to compare before committing.
Before filing, you must complete an approved credit counseling course within 180 days of filing. This usually takes 1–2 hours online and costs around $25–$50. Your attorney will give you a list of approved providers.
Once you file, an "automatic stay" immediately halts ALL collection actions — including the foreclosure sale. This happens the moment the petition is filed. The lender cannot legally proceed while the stay is active.
Your attorney helps you create a plan to repay all or part of your debts over 3–5 years. This includes your mortgage arrears, so you must be able to afford both your regular mortgage payment AND a portion of back payments each month.
Missing even one plan payment can get your case dismissed — and the foreclosure sale can be rescheduled immediately. There is no grace period once dismissed. This is the most critical step of the entire process.
Before your discharge (end of the plan), you must complete a debtor education course. This is separate from the initial credit counseling. Your attorney will guide you on timing and approved providers.
• Chapter 13 stays on your credit report for 7 years from the filing date.
• Buying another home, getting a car loan, or renting will be significantly harder during this period.
• If you miss payments and the case is dismissed, you lose all protections and the foreclosure proceeds immediately.
• This is a serious legal commitment — not a quick fix.
There are faster, cleaner options that protect your credit and let you move on without a multi-year legal commitment.