Yes, you can save our home from foreclosure by filing bankruptcy. Immediately upon filing a bankruptcy, a federal law called the Automatic Stay protects you and your property from collection efforts, including foreclosure. Therefore, without the court’s approval, your lender cannot foreclose upon you home once you file bankruptcy.
Also, in a Chapter 13 case, you can force your lender to accept payments to cure your default over time. For example, if you are $10,000.00 behind on your mortgage and your lender has not yet foreclosed, you may file a Chapter 13 case and cure your default by making your regular monthly payments plus a cure payment of $176.00 per month (in a 60 month case).
Furthermore, in certain limited circumstances, you can alter the terms of the loan to pay only as much as the property is worth. If you are in default on your mortgage and wish to keep the property, Chapter 13 is often the best solution.