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There are situations when filing a Chapter 13 bankruptcy can help a homeowner save their house from foreclosure. When a debtor files the petition for bankruptcy relief, the automatic stay kicks in, preventing creditors from collecting any debts from the debtor. (Please see our section on the Automatic Stay for more information). During the lifetime of the bankruptcy, the Automatic Stay will prevent the bank from initiating or proceeding with a foreclosure. This gives the debtor an opportunity to pay back the money owed against the mortgage.