Facing Foreclosure? Bankruptcy Can Give You Time — and Options.
Filing bankruptcy triggers an immediate halt to foreclosure proceedings. It won’t solve everything on its own, but it can give you the breathing room to save your home.
What Foreclosure Looks Like in Kentucky
Kentucky is a judicial foreclosure state, meaning lenders must go through the court system to foreclose on a home. That process takes time — but it does move forward, and once a sale date is set, the window to act narrows quickly.
If you’ve missed mortgage payments and received notices from your lender, or if a foreclosure action has already been filed against you, you are not out of options.
How Bankruptcy Stops Foreclosure
The moment you file for bankruptcy — Chapter 7 or Chapter 13 — the automatic stay goes into effect. This federal court order immediately halts most foreclosure proceedings, including any scheduled sale. The lender cannot take further action against your home without first getting permission from the bankruptcy court.
This doesn’t mean the foreclosure disappears permanently. What it does is stop the clock — sometimes at a critical moment — and give you and your attorney time to evaluate your options.
Chapter 13: The Most Powerful Tool for Saving a Home
If your goal is to keep your home, Chapter 13 is almost always the better path. Chapter 13 allows you to catch up on missed mortgage payments — called arrears — over the life of a three-to-five year repayment plan, while continuing to make your regular monthly payments going forward.
As long as you complete the plan and stay current, your lender cannot foreclose. We have helped several hundred Kentucky homeowners stop foreclosure and find a path to keeping their homes.
Chapter 7 and Foreclosure
Chapter 7 can temporarily stop a foreclosure through the automatic stay, but it does not provide a mechanism to catch up on arrears. If you’re significantly behind on your mortgage and want to keep your home, Chapter 13 is usually the more appropriate option.
However, if keeping the home isn’t financially realistic, Chapter 7 may allow you to walk away from the mortgage debt without continued personal liability. The specifics depend on your situation, and it’s worth a conversation.
Time Is the Critical Factor
Foreclosure has deadlines. The further along the process is, the fewer options you have. If you’ve received a foreclosure notice — or even if you’re just several months behind and worried about what’s coming — the right time to call is now, not after the next notice arrives.
We practice bankruptcy exclusively and have helped several hundred Kentucky homeowners halt foreclosure. We can move quickly when timing matters.
Free consultations. Same-day appointments available. We serve all of Kentucky.