How a Chapter 13 Foreclosure Attorney Can Stop the Auction and Save Your NYC Home

Facing foreclosure in New York City can be terrifying. The thought of losing your home in a public auction is devastating. But there’s good news: a skilled Chapter 13 foreclosure attorney can stop that auction, protect your rights, and help you build a plan to save your home.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a legal process that allows individuals with regular income to reorganize their debts through a court-approved repayment plan. It typically lasts 3 to 5 years. Unlike Chapter 7, which liquidates assets, Chapter 13 helps you keep your home and other property.

How Chapter 13 Stops Foreclosure Auctions

When you file Chapter 13, something powerful happens: the “automatic stay.”

This legal tool immediately stops:

Even if your home is days away from a scheduled auction, a properly filed Chapter 13 case can freeze the process and give you time to act.

Repayment Plan to Catch Up on Mortgage

Your Chapter 13 plan will include the amount you’re behind on your mortgage, spread out over the 3- to 5-year plan. That means you can catch up gradually while also paying down other debts like credit cards or medical bills.

Example: If you’re $30,000 behind on mortgage payments, Chapter 13 lets you repay that in monthly installments instead of coming up with it all at once.

Why You Need a Chapter 13 Foreclosure Attorney

Bankruptcy law is complex. A Chapter 13 foreclosure attorney can:

  • Draft a feasible repayment plan that meets legal requirements
  • Ensure proper filing to trigger the automatic stay
  • Deal with aggressive mortgage servicers and creditors
  • Represent you at hearings and court proceedings

An experienced NYC attorney will also know local court rules and how to work with the Southern and Eastern District Bankruptcy Courts.

NYC-Specific Foreclosure Challenges

In NYC, foreclosure can move slowly—but that’s a double-edged sword. While it gives homeowners time, interest and penalties continue to pile up. Also, New York law requires judicial foreclosure, meaning a lender must file a lawsuit in court. A Chapter 13 filing interrupts this process.

Additional Benefits of Chapter 13

Besides stopping foreclosure, Chapter 13 also:

chapter 13 foreclosure attorney
chapter 13 attorney stopping foreclosure
  • Stops wage garnishment and collection lawsuits
  • Allows you to pay unsecured debts like credit cards at a fraction of the total
  • Protects cosigners from collection during the plan
  • Helps improve credit over time through consistent payments

Common Questions

Can I file Chapter 13 if I’ve already received a foreclosure notice? Yes. As long as the foreclosure sale hasn’t occurred, Chapter 13 can still help.

Do I need a lawyer to file? Technically, no—but it’s highly recommended. Filing incorrectly can lead to dismissal and loss of protection.

What happens if I miss a payment during the plan? If your situation changes, your attorney can seek plan modification to avoid dismissal.

The Bottom Line

If you’re behind on your mortgage and facing foreclosure in NYC, don’t wait. Chapter 13 bankruptcy offers a powerful way to keep your home and reset your finances—but timing and accuracy are critical.

If you’re considering bankruptcy or simply want to understand your options, we’re here for you. Call or text us at 212-244-2882, email us at info@midtownbankruptcy.com, or visit www.midtownbankruptcy.com to get started. At The Law Office of William Waldner, P.C., we’ve helped countless New Yorkers take control of their financial future — and we’re ready to help you, too.

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