Function

• Filing for bankruptcy brings your foreclosure case to a halt (pending further order of the bankruptcy court).
  
  

Types

• A Chapter 7 bankruptcy discharges your debt. A Chapter 13 bankruptcy allows you the ability to pay off your debt through the bankruptcy court over a period of two to five years.
  
  

Time Frame

• Your interests are best protected by filing for bankruptcy shortly after a foreclosure case is filed against you and your property.
  
  

Significance

• Through a bankruptcy, you have the ability to enter into a reaffirmation with your home mortgage lender. The reaffirmation agreement permits you to keep your home and pay off your mortgage pursuant to a new loan agreement.
  
  

Warning

• Because of the legal complexities of foreclosure and bankruptcy, consider hiring an attorney to represent you in these matters.