How Bankruptcy Stops Foreclosure in Maryland

Introduction

If you’ve fallen behind on your mortgage payments, you may be worried about losing your home. The good news is that bankruptcy can stop foreclosure immediately through a legal protection called the automatic stay. Here’s how it works and what your options are.

The Power of the Automatic Stay

When you file for bankruptcy, the court issues an automatic stay, which:

• Immediately halts foreclosure proceedings.

• Stops collection calls and letters from your mortgage lender.

• Gives you time to catch up or restructure payments. This protection is often the difference between keeping or losing a home.

Chapter 7 and Foreclosure

• Chapter 7 bankruptcy may temporarily stop foreclosure but does not provide a long-term solution.

• You may be able to delay the sale of your home, giving you time to explore other options.

• If you want to keep your house, Chapter 7 works best if you’re current or nearly current on your mortgage.

Chapter 13 and Foreclosure

• Chapter 13 bankruptcy allows you to catch up on missed payments over 3–5 years.

• Foreclosure is stopped, and as long as you make your plan payments, you can keep your home.

• This is often the best choice for homeowners with steady income who need time to get back on track.

Other Benefits of Bankruptcy for Homeowners

• May help eliminate second mortgages in some cases.

• Can reduce or eliminate unsecured debts, freeing up money for your mortgage. Provides breathing room to negotiate with lenders.

  
  

Maryland Foreclosure Laws to Know

• Foreclosure can move quickly once initiated.

• Filing bankruptcy in time is critical—waiting too long may limit your options.

Conclusion

Bankruptcy is one of the most powerful tools to protect your home from foreclosure in Maryland. If you’re behind on payments, acting quickly can make all the difference.

Don’t wait until it’s too late. Contact Middleton Legal today for a free consultation and learn how bankruptcy can help you save your home.