When Chapter 7 bankruptcy
is filed, an automatic stay takes effect that puts an immediate halt to foreclosure actions. Unfortunately, this is a temporary solution. Chapter 7 will keep you in your house a little longer, but Chapter 13 tends to be the best way to keep your house by reorganinzing the repayment of the arrearage.
However, if your mortgage is upside down or your house no longer makes sense for you financially, Chapter 7 offers you the option to shed the problem, get a fresh start and move on.