Stop Foreclosure in Newark

If you are facing foreclosure, bankruptcy can stop the process and give you time to catch up. Learn more about saving your home.

The Automatic Stay

The moment you file bankruptcy, the automatic stay takes effect. This federal court order stops:

  • Foreclosure sales and proceedings
  • Collection calls from your mortgage servicer
  • Any attempts to seize your property

Chapter 13: Cure and Maintain

Chapter 13 is the strongest tool for homeowners behind on their mortgage:

  • Cure arrears: Spread missed payments over 3-5 years while resuming regular payments
  • Strip junior liens: If your home is worth less than your first mortgage, second mortgages may be removed
  • Homestead protection: New Jersey exemption: $27,900 (federal only -- NJ has no state exemptions)

Chapter 7 and Foreclosure

Chapter 7 can delay foreclosure but does not provide a permanent solution unless you can get current on payments. It can:

  • Buy you 3-4 months while the case is pending
  • Eliminate other debts so you can afford mortgage payments
  • Discharge your personal liability if you decide to let the home go

Frequently Asked Questions

How quickly does the stay stop foreclosure?

Immediately upon filing. If a sale is scheduled, you should file before the sale date. Emergency filings are possible.

What if I already had a case dismissed this year?

If a prior case was dismissed within the last year, the automatic stay may last only 30 days or may not take effect at all. The court can extend it upon motion. Learn more.

Open Bankruptcy Project Network

OBP Home 1328(f) Screener Ch. 7 vs 13 Automatic Stay 341 Meeting Means Test Cost Guide Dismissed? File Again? How to File