What Is the Latest I Can File Bankruptcy to Avoid Foreclosure in NYC?
If you’re facing foreclosure in New York, you may be wondering: how close to the auction date can I file for bankruptcy and still save my home? The good news is that bankruptcy can stop a foreclosure—but only if you file before the foreclosure sale is completed.
Here’s what you need to know about timing your bankruptcy filing in New York to protect your home.
⏰ The Critical Deadline: Before the Foreclosure Sale Is Completed
Under both federal bankruptcy law and New York foreclosure law, the latest you can file for bankruptcy to stop a foreclosure is before the gavel drops at the foreclosure sale. Once the auction is complete, you lose all legal and equitable interest in the property—even if the deed hasn’t been recorded yet.
📚 Key Case:
Stewart v. Fannie Mae, 2024 U.S. Dist. LEXIS 224449 (S.D.N.Y. 2024) — The court held that once the foreclosure sale is completed, the debtor no longer has any interest in the property, and bankruptcy cannot revive that interest.
🛑 The Power of the Automatic Stay
When you file for bankruptcy, the court issues an automatic stay under 11 U.S.C. § 362, which immediately stops:
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Foreclosure sales
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Collection calls
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Lawsuits
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Bank levies
But timing is everything: if the foreclosure sale has already happened, the automatic stay cannot reverse the sale.
📚 In re Ghosh, 38 B.R. 600 — Reinforces that the automatic stay only protects property that is part of the bankruptcy estate. Once the foreclosure sale is complete, the property is no longer part of the estate.
💡 What If the Sale Is Tomorrow?
You can still file for bankruptcy up until minutes before the foreclosure auction—as long as your petition is electronically time-stamped before the sale is complete. If you wait even a moment too long, you could lose the home forever.
That’s why it’s critical to work with a bankruptcy attorney who is experienced with emergency filings.
⚖️ What About the Right to Redeem?
Federal law under 11 U.S.C. § 108(b) allows debtors up to 60 days after filing to exercise any right to redeem property—but that only applies if New York State law still allows redemption, which it doesn’t after the foreclosure sale has taken place.
📚 Vitruvian Design, LLC v. Sharp (In re Sharp), 666 B.R. 906 — Clarifies that § 108(b) can extend a redemption window only if that window hasn’t already closed under state law.
✅ Your Best Move: File Before the Sale
If you’re behind on mortgage payments and a foreclosure sale is looming:
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Don’t wait—the sooner you speak to a bankruptcy attorney, the more options you’ll have.
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File before the sale—even if it’s the day before, filing can stop the sale cold.
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Consider Chapter 13—which allows you to catch up on mortgage payments over 3–5 years.
🏠 Need Urgent Help to Stop a Foreclosure in NYC?
At the Law Office of William Waldner, we specialize in emergency bankruptcy filings that can stop foreclosure sales, repossessions, and garnishments—even on the same day. If your home is scheduled for auction, we may still be able to help—but only if you act fast.
📞 Call now or schedule your consultation at www.midtownbankruptcy.com.
Let’s protect your home and your future—before it’s too late.
