How Chapter 13 Bankruptcy Can Stop Foreclosure
When a Chapter 13 bankruptcy case is filed, the automatic stay generally goes into effect immediately. This is a federal court order that stops most collection actions — including foreclosure activity. In many cases, that means the lender must halt a scheduled foreclosure sale the moment bankruptcy is filed.
Chapter 13 is often used when a homeowner has fallen behind on mortgage payments but has income to make ongoing payments and repay the arrears over time. Instead of paying the full default amount all at once, Chapter 13 allows you to spread those missed payments out over a repayment plan lasting three to five years.
This can be a valuable option for homeowners who:
- Are behind on mortgage payments
- Have received a notice of default or notice of sale
- Need time to catch up on arrears without paying everything at once
- Want to avoid losing their home
- Have regular income and can afford a structured repayment plan
What Chapter 13 Can Do for Homeowners Facing Foreclosure
For many people, foreclosure is not just a mortgage problem — it is part of a larger financial strain involving credit cards, tax debt, medical bills, lawsuits, or repossessions. Chapter 13 helps address the full picture, not just the foreclosure itself.
Stop the Foreclosure Sale
The automatic stay can halt a pending foreclosure sale immediately upon filing.
Protect Your Home
Reorganize your debts and keep your primary residence while your plan is active.
Catch Up Over Time
Repay missed mortgage payments over 3–5 years instead of all at once.
Address Other Debts
Tackle credit cards, medical bills, and tax debt that are making the mortgage unaffordable.
One Structured Plan
A single court-approved plan based on your financial reality replaces multiple creditor demands.
Court Accountability
Court supervision creates structure and keeps all parties — including lenders — accountable.
When You Should Contact a Foreclosure Bankruptcy Lawyer
Time matters in foreclosure cases. The earlier you get legal advice, the more options you may have. Waiting until the last minute can make it harder to prepare and file a proper Chapter 13 case before the foreclosure sale.
Don't Wait Until the Last Minute
Foreclosure deadlines can move quickly. Even if a sale date is approaching, you may still have options — but acting immediately is critical. Call us today at (866) 934-4645.
You should speak with a bankruptcy attorney as soon as possible if:
- You are behind on your mortgage
- Your lender has sent foreclosure notices
- A foreclosure sale date has been posted
- You have already tried a loan modification or forbearance without success
- You need immediate protection to keep your home
Even if the foreclosure sale is approaching quickly, you may still have options. Our office can evaluate your situation and determine whether Chapter 13 is a realistic path.
Can Chapter 13 Save My Home?
In many cases, yes. Chapter 13 is specifically designed to help individuals reorganize debts and protect important assets, including a primary residence. Whether it will work in your case depends on several factors:
How Far Behind You Are
The amount of mortgage arrears affects whether a repayment plan is affordable within your budget.
Your Income & Budget
You must have enough income to fund a Chapter 13 plan while maintaining current mortgage payments.
Other Liens or Legal Issues
Second mortgages, tax liens, or other legal encumbrances on the property may affect the strategy.
Foreclosure Sale Status
Chapter 13 must be filed before the foreclosure sale is completed for it to provide relief.
Every case is different. A Chapter 13 filing is not a magic fix — it only works when the plan is feasible. Our role is to give you an honest assessment of whether bankruptcy is likely to help and what the process would look like for your specific situation.
Our Approach
At Hooman Khoshnood Law, PC, our practice is focused on bankruptcy law. We help clients evaluate whether Chapter 13 is the right tool for stopping foreclosure and, if so, guide them through the process from start to finish.
When you contact us about a foreclosure matter, we look at the full financial picture:
- The status of the mortgage default and foreclosure timeline
- Your income and monthly budget
- Other debts that may affect plan feasibility
- Whether Chapter 13 offers a workable way to save the property
- Whether alternative options such as loan modification may be available
Because we are a bankruptcy practice, our foreclosure help is centered on legal solutions available through the Bankruptcy Code — especially Chapter 13. If Chapter 13 is not the right fit, we can explain that clearly and help you understand your alternatives.
Our Clients Talk
Real stories from real clients
"Mr. Khoshnood did an amazing job helping me with my bankruptcy case. He explained things thoroughly and kept me up to date throughout the process."
"Mr. Hooman and his team were amazing. They took care of everything they said they would. The process was smooth, I highly recommend them."
"Excellent client service. They work with you through your entire legal process, ensuring you understand every document and legal term."
"This lawyer helped me prepare for my case and answered every question I had. Him or the assistant always answered the phone. So thankful!!"
Why Homeowners Choose Chapter 13 to Stop Foreclosure
For many Texans, Chapter 13 provides breathing room at the exact moment they need it most.
Immediate Protection
The automatic stay stops foreclosure activity the moment the case is filed — no waiting.
Time to Catch Up
Repay arrears over 3–5 years instead of facing an impossible lump-sum demand.
Court Supervision
Court oversight creates structure, accountability, and legal enforceability for all parties.
One Plan for Everything
Address mortgage arrears, credit cards, medical debt, and tax obligations in a single plan.
Hooman Khoshnood
"A foreclosure notice does not always mean you are out of options. Chapter 13 may give you the chance to stop the sale, catch up over time, and protect your home."
Hooman Khoshnood is a Texas-licensed bankruptcy attorney with over 25 years of experience helping individuals and families across Texas stop foreclosure, protect their homes, and regain financial stability through Chapter 13 bankruptcy.
Hooman understands that falling behind on a mortgage is rarely just a single problem. It is usually part of a broader financial picture involving multiple debts, reduced income, and mounting pressure. His approach is to evaluate the full situation — not just the foreclosure — and determine whether Chapter 13 can provide a realistic, workable path forward.
He handles all aspects of the Chapter 13 case from start to finish: case preparation, filing, attending the 341 meeting, and guiding clients through the 3–5 year repayment plan. Clients never fill out forms alone — his team manages all paperwork and requires only your signature when everything is ready.
Hooman serves homeowners across Austin, Round Rock, San Antonio, Houston, Tyler, League City, Waco, Willowbrook, McAllen, Brownsville, and Plano. Consultations are available in person or over Zoom.
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