Filing bankruptcy to stop foreclosure follows a specific process. This step-by-step guide covers required documents, filing methods, court procedures, and immediate effects.

Filing bankruptcy to stop foreclosure is a federal legal process that follows specific steps, both procedural and practical. Whether you are filing Chapter 7 or Chapter 13, the core filing process is the same at the beginning. The differences emerge in what comes after the initial filing.

This guide walks through the process from the decision to file through the immediate post-filing period, focusing on what is needed, in what order, and what each step accomplishes.

Step 1: Complete Required Credit Counseling

Before you can file for bankruptcy, you must complete a credit counseling course from a provider approved by the U.S. Trustee Program. This course must be completed within 180 days before filing. Most providers offer online courses that take 60 to 90 minutes and cost between $15 and $50. At the end of the course, you receive a certificate that must be filed with your bankruptcy petition.

If you are in a genuine emergency and cannot complete counseling before the filing deadline, you can file a motion for a temporary waiver, but these are rarely granted. Complete the counseling as early as possible.

Step 2: Choose the Right Chapter

Determine whether Chapter 7 or Chapter 13 is appropriate for your situation. Chapter 7 is appropriate if you plan to surrender the home or need temporary delay and debt discharge. Chapter 13 is appropriate if you have regular income and want to keep the home by curing arrears through a repayment plan.

Your eligibility for Chapter 7 requires passing the means test. Your eligibility for Chapter 13 requires regular income and total debts within the applicable limits. An attorney can evaluate which chapter you qualify for and which best serves your goals.

Step 3: Gather Required Documents

You will need to provide several categories of documents to prepare your bankruptcy schedules. Financial documents include your last two years of federal tax returns, last six months of pay stubs or proof of income, last three to six months of bank statements, retirement and investment account statements, and any recent appraisals of real property.

Debt documents include your mortgage statement showing account number, balance, and payment history, all other loan statements, credit card statements, tax debt documentation, and any pending lawsuit documents or judgment records.

Property documents include the deed to your home, any home equity line or second mortgage documents, vehicle titles, and documentation of any other significant assets.

The more completely you can gather these documents before or during the filing process, the faster your attorney can prepare complete and accurate schedules.

Step 4: Prepare and File the Petition

Your attorney (or you, if filing pro se) prepares the bankruptcy petition using official forms available from the U.S. Courts website. For an emergency filing to stop an imminent foreclosure, you may file a skeleton petition initially and supplement it within 14 days.

The petition is filed electronically through the court’s CM/ECF system. Upon filing, the court assigns a case number and the automatic stay goes into effect immediately. The court generates a Notice of Case Filing, which is sent to all listed creditors.

The filing fee as of 2025 is $338 for Chapter 7 and $313 for Chapter 13 for individual cases. You may apply to pay in installments or, in Chapter 7 for low-income filers, request a fee waiver.

Step 5: Notify Your Lender

Immediately after filing, notify your mortgage lender and any foreclosure trustee or attorney of the bankruptcy filing. Provide the case number and a copy of the filed petition. This can be done by email, fax, or phone. Keep records of all notifications.

This immediate notification is especially important if a foreclosure sale is scheduled within days. While the stay is legally effective from the moment of filing, the sale cannot be stopped in practice unless the parties conducting it are aware of the bankruptcy.

Step 6: File Complete Schedules and Plan

If you filed a skeleton petition, complete schedules must be filed within 14 days. In Chapter 13, a proposed repayment plan must also be filed within 14 days of the petition date in most districts.

The complete schedules provide the court and creditors with a full picture of your financial situation. They form the basis for the trustee’s evaluation of your case and for creditor claims.

Immediate Effects After Filing

The automatic stay is in effect from the moment of filing. All foreclosure activity ceases. Your lender cannot proceed with a sale, continue a foreclosure lawsuit, or contact you about the debt.

The court appoints a trustee and schedules a meeting of creditors, called the 341 meeting, for approximately 30 to 45 days after filing. In Chapter 13, a confirmation hearing is scheduled for 25 to 45 days after plan filing.

Your lender may file a motion for relief from stay. In Chapter 7, courts often grant these motions relatively quickly if you are behind on payments. In Chapter 13, compliance with the plan is your primary protection against stay relief.

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