How Long will Chapter 13 Bankruptcy Delay Foreclosure? 4 Things to Know

If you are facing foreclosure, you may be wondering how long a chapter 13 will delay that process. Here is everything you need to know

If you are behind on your mortgage payments and your lender has begun foreclosure, filing for Chapter 13 bankruptcy can help delay the foreclosure. Under chapter 13 bankruptcy, you will have an affordable repayment schedule to keep up with your debts, including mortgage payments. If you keep up with your current mortgage as stipulated in your repayment plan, you can stop foreclosure. We have explained the four things you need to know about foreclosure in Chapter 13 bankruptcy.

What Is Foreclosure?

It is a legal proceeding where a mortgage lender is authorized to repossess a home from a borrower who has missed several mortgage payments. The lender sells the property to recover the debt. If your financial situation has taken a turn for the worst and you won't be able to continue making your payments, we always advise debtors to contact their lenders and let them know. Most lenders are open to working out a payment plan that suits your current financial situation, even if it means smaller payments or allowing you to defer for a few months. This is because it is economical for the lender to work out a repayment plan than foreclose a home.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a type of bankruptcy commonly referred to as "wage-earners bankruptcy" as it helps people with an income repay their debt affordably. If you have some income that you can channel your debts, even if it means paying less than the minimum payments, then Chapter 13 bankruptcy might be the best option.

In Chapter 13 bankruptcy, the court will appoint a trustee who will work alongside you or your bankruptcy attorney to create a repayment plan. The plan will combine all your debts, making them easier to manage. The trustee will manage your assets and monitor the progress of your monthly repayments.

How Much Will I Pay if I File Chapter 13 Bankruptcy?

You already understand how Chapter 13 bankruptcy works- you will follow a repayment plan to get rid of your debt, but how much will you pay monthly? Your monthly payment will depend on your finances. Consider taking the free Chapter 13 calculator below based on the bankruptcy forms to estimate your Chapter 13 plan payment.

Can I Stop Foreclosure by Filing for Chapter 13 Bankruptcy?

Filing Chapter 13 bankruptcy can help stop foreclosure, provided you consistently follow your repayment plan. Once you file for bankruptcy, the court puts an automatic stay on your debts, prohibiting lenders from taking further actions to recover the money. The automatic stay forbids your lender from foreclosing your home until your bankruptcy case gets dismissed or they file to lift the automatic stay on the house.

Upon completing your bankruptcy plan, the court will discharge your unsecured debts. However, since a mortgage is a secured debt, it will not be discharged. Fortunately, you can complete your repayment plan and continue making modified mortgage payments until you pay off the entire balance. Besides, after the court discharges your unsecured debts, you will be more financially capable of continuing to pay your mortgage without the risk of foreclosure.

Contact Your Lender Before Missing a Payment

The power of communication is highly underestimated. You should always communicate with your lender once you realize you cannot make your payment. It is normal to panic and avoid facing your lender, but ignoring your lender and waiting for the issue to go away only makes things worse. Ignoring your lender might force them to sue you, and they will likely get a default judgment against you. Therefore, always communicate with your lender before missing your first payment.


There are numerous reasons why borrowers may fall behind on their mortgage payments. It could be due to unemployment, disability, or other types of financial hardships which make it hard to keep up with your mortgage payments. Should you encounter financial hardship that keeps you from making your mortgage payment, always notify your lender.

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