Filing for a personal bankruptcy triggers an “automatic stay” that suspends debt collector harassment, repossession efforts, pending lawsuits from creditors, foreclosure
and wage garnishment. Homeowners, who want to keep their homes, may qualify for a Chapter 13 bankruptcy that enables them wipe out some debts and catch up on mortgage payments over a period time. However, foreclosure and fees may be suspended if the borrower initiates a Chapter 13. You can remain in your home while the bankruptcy is in progress. If you successfully complete Chapter 13, you will be able to avoid foreclosure.