Yes, filing bankruptcy can stop a foreclosure.

The automatic stay is the part of the bankruptcy law that bans creditors from taking any kind of collection action once a bankruptcy case has been filed. That’s not just limited to wage garnishments and phone calls; it stops a foreclosure proceeding dead in its tracks. Someone can file bankruptcy today to stop a foreclosure sale scheduled for tomorrow morning.

But, that’s not the entire story. Real estate loans are secured debts and the type of bankruptcy you file determines what you can do from there.