Filing Bankruptcy Stops Foreclosure Proceedings Instantly IN GEORGIA, ALMOST ALL FORECLOSURES ARE NON-JUDICIAL, WHICH MEANS THE MORTGAGE COMPANY DOES NOT NEED TO TAKE YOU TO COURT IN ORDER TO FORECLOSE! Receiving a foreclosure notice can be scary and traumatic. Filing bankruptcy will stop foreclosure, regardless of which type of bankruptcy you file. However, the depending on what chapter of bankruptcy you file will determine whether the foreclosure is stopped temporarily or permanently. Chapter 13 bankruptcy can permanently stop a foreclosure. To qualify to stop a foreclosure in a Chapter 13, you must have enough income to pay mortgage payments after your filing date, in addition to a bankruptcy payment that will include mortgage arrears, homeowner association fees, car payments, and a portion of debt owed to unsecured creditors, such as credit card or medical bills. For example, if you are 4 months behind on your mortgage, you must have the income to pay for the regular mortgage payment going forward, plus the 4 months you are behind, spread out over a 36 or 60 month period. Chapter 7 bankruptcy will stop a foreclosure, but only temporarily. If your mortgage payments are behind and you file a Chapter 7, it is highly likely that you will ultimately lose the house unless you can pay back all the arrears before the Chapter 7 ends. Since Chapter 7 bankruptcy usually only lasts between 4 to 6 months, there is a very short amount of time to pay back arrears. However, if your goal is to simply slow down the foreclosure process, rather than completely eliminate it, Chapter 7 will accomplish that goal. Loan modifications can save your home from foreclosure. However, in our experience, loan modifications occur infrequently, and often provide little help even when granted. Many times, families are turned down for loan modifications because they lack the income needed to pay even a reduced mortgage. Filing bankruptcy can aid in obtaining modifications, since bankruptcy reduces the amount of money paid to other creditors. Also, removing second mortgages in bankruptcy can have a similar effect, freeing up cash that can instead be applied to the First Mortgage.