David M. Siegel answers in 43 seconds. Watch on YouTube · Read the transcript.
Short answer: Yes. Stopping a foreclosure is the single most common reason people file Chapter 13. It lets you repay the mortgage arrears — the amount you fell behind — over three to five years while you resume your regular monthly payment. Chapter 7 also stops a foreclosure, but it may not save the home long term.
Why Chapter 13 is the chapter that saves houses
When you fall behind on a mortgage, the lender generally will not accept a partial payment. They want the entire arrearage, and they want it now — which is precisely what a household in trouble cannot produce.
Chapter 13 breaks that deadlock. The arrears go into a plan and are repaid over three to five years. Meanwhile your lender accepts your regular monthly payment again, because there is a case on file. That is the mechanism, and it works.
The filing stops the sale
The automatic stay takes effect the moment the case is filed, and a scheduled foreclosure sale cannot proceed. This is time-sensitive in a way most bankruptcy questions are not — there is an actual date on the calendar.
If a sale date has been set, that is the single most urgent reason to speak with an attorney immediately rather than at the end of the month.
Chapter 7 stops it too, but ask what happens next
A Chapter 7 filing also triggers the automatic stay and halts a foreclosure. The difference is what follows. Chapter 7 has no mechanism for curing arrears, so unless you can bring the loan current another way, the lender can eventually resume.
That does not make Chapter 7 the wrong answer. For some people the honest calculation is that the house is no longer affordable, and the better outcome is discharging the debt — including any deficiency after a foreclosure — and starting clean rather than committing to five years of payments on a home that was already stretching them.
Which one is right depends on the numbers
The differences between the chapters are substantial here, and the choice turns on your income, the size of the arrears, your equity, and whether the ongoing payment is genuinely sustainable.
As of January 1, 2026 the Illinois homestead exemption is $50,000 per owner and $100,000 on a jointly owned home, which changes the equity analysis considerably compared to prior years.
Is there a sale date on your calendar?
The consultation is free and there is no obligation. You will find out
what you qualify for, which debts can be eliminated, what it costs, and what the payment plan looks like.
Wheeling: (847) 520-8100
South Chicago: (773) 276-6969
Also serving Joliet, Westchester, and Cook, Lake, Will and DuPage counties.
Full transcript of the video
can bankruptcy stop a foreclosure well that’s the main reason why someone would file a Chapter 13 to stop a foreclosure on their home it allows you to repay the mortgage arrears the part you fell behind on your mortgage over a three to five year period of time while being able to make your regular mortgage payment on time once again your lender will accept the payment once there’s a Chapter 13 case on file Chapter 7 will also stop a foreclosure but it might not save your house in the long term speak with an attorney to find out what chapter you qualify for and whether or not saving your home is going to be the best option under Chapter 13 or if a fresh start and giving up the home is a better option under Chapter 7 there are huge differences and it really depends on your particular case
Related questions
About the author. David M. Siegel has represented consumer bankruptcy clients in the Northern District of Illinois since 1991 and is the author of several books on consumer bankruptcy. His offices are in Wheeling, South Chicago, Joliet and Westchester.
This article is general information about Illinois and federal bankruptcy law. It is not legal advice, and reading it does not create an attorney-client relationship. Every case turns on its own facts — speak with an attorney about yours.
