Stopping foreclosure is another positive side effect from filing for Bankruptcy. If your house is being foreclosed on, due to a failure to make mortgage payments, the filing of a Bankruptcy will put a hold on the process. This occurs in both a Chapter 7 Bankruptcy, and a Chapter 13 Bankruptcy. If the Bankruptcy filing is a Chapter 7, the hold on the foreclosure process is only temporary.
If the Bankruptcy filing is a Chapter 13, the Chapter 13 process will allow you to begin making regular payments again, and it will allow you up to 5 years of time to catch up on the payments you have missed. While in the Chapter 13 process, you may be able to eliminate other debts, reduce interest on other secured debts [ie vehicle debts], and allow you time to put all of your finances back in order.