Many people use bankruptcy as a last resort in order to stop foreclosure on the family home. Little do they know, they might have not been in foreclosure if filing bankruptcy became an option to them much earlier. Just ask any bankruptcy attorney and they will tell you of the calls they get on the morning of a foreclosure sale asking to file bankruptcy to stop it. It's not that easy. While it is possible to file Chapter 7 bankruptcy electronically in a short period of time, it takes much longer than that to prepare the bankruptcy petition. I suppose a bankruptcy attorney could submit an incomplete bankruptcy petition and send in the amendments later. Most attorneys don't like to do business this way. Many of them don't like dealing with clients that do everything on a last-minute basis. This can become very frustrating for a bankruptcy attorney asking for documentation, i.e. pay stubs, bank records, taxes and the like. Usually, this can be much of the reason the individual is having financial trouble. If this is the way they get out of debt, it's pretty obvious that it's probably similar to how they pay their bills.

It is true that filing Chapter 7 bankruptcy will stop foreclosure but in most cases only temporarily. In some cases where an individual has a large amount of unsecured debt that is crippling them from paying household expenses, filing Chapter 7 might just do the trick. When filing Chapter 7, all unsecured debts are wiped out in bankruptcy discharge. Many times, if done soon enough, this will free up enough extra cash to be able to keep up on the mortgage payment. If the payment is unaffordable, the foreclosure will stop temporarily until the lender files a motion with the bankruptcy court for relief of stay. This will allow the lender to once again proceed with legal action to recover the property.

On the other side of the coin is Chapter 13 bankruptcy. Filing Chapter 13 is almost made with the idea of protecting one's property. When filing Chapter 13 bankruptcy, the individual and their bankruptcy attorney have to submit a feasible repayment plan that will last 3 to 5 years to the bankruptcy court. In Chapter 13, debts are paid by priority with secured debts being paid first and the unsecured debts getting whatever's left over. That's why a home mortgage would have first shot at being paid, while other creditors would fight over the scraps. Bankruptcy and foreclosure fit together like bacon and eggs. And just like a successful breakfast, it's important to have proper timing to get a good end result. When someone gets behind on their house payments, they shouldn't wait for the foreclosure notice, but call a bankruptcy attorney to discuss their options.