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Bankruptcy can save your house from foreclosure produced an article explaining about how bankruptcy can help individuals save their homes from foreclosure through a Chapter 13 bankruptcy.  The article commented that bankruptcy can bring foreclosure proceedings to a halt, end harassment from debt collectors, and give borrowers time to make up missed payments and reorganize their finances.  In some cases, bankruptcy can also help mortgage borrowers save their homes permanently, the article noted.

The article quoted a N.Y. attorney as saying, "It's the best tool there is for people behind in payments but who have ongoing income...those who had been making payments and who could be making payments again."

The article noted that the first thing a bankruptcy filing accomplishes is to stop the foreclosure process.  Lenders can't foreclose or even try to collect debt until permitted to do so by the court.

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