Stopping a Maryland Foreclosure: Chapter 7 or Chapter 13?

 Posted on December 07, 2025 in Foreclosure

If you are a Maryland homeowner facing foreclosure, you may feel like the process is moving too fast for you to react. If you are considering filing for bankruptcy, both Chapter 7 and Chapter 13 bankruptcy offer powerful protections that can stop foreclosure procedures through the automatic stay. Bankruptcy can function as a legal "pause" button on foreclosure in both cases.

However, while both types of bankruptcy have this in common, one merely delays foreclosure, while the other can provide a long-term path to staying in your home. Understanding the distinction is essential to determining whether you can realistically keep your home. An experienced Charles County, MD consumer bankruptcy attorney can help you explore your options and make the best choice for a fresh financial start.  

How Does the Foreclosure Process Work in Maryland?

Maryland’s non-judicial foreclosure system allows lenders to move quickly once a Notice of Intent to Foreclose and Order to Docket are filed. Homeowners may quickly face auction scheduling, escalating arrears and fees, and loss mitigation denials. Because the process goes so quickly, filing for bankruptcy can offer immediate relief and give you a bit of breathing room.

While both Chapter 7 and Chapter 13 offer immediate relief, there are very different outcomes. Chapter 7 essentially offers a short-term pause, while Chapter 13 offers a long-term solution. In both cases, the automatic stay immediately stops an upcoming foreclosure sale, collection calls, wage garnishments, and repossession efforts, even if filed only days before the auction is scheduled.

How Does Chapter 7 Bankruptcy Affect Foreclosure Proceedings?

When you file for Chapter 7 bankruptcy, the foreclosure is temporarily paused, and it can delay a foreclosure sale by several weeks to a few months, depending on how quickly the bankruptcy case moves through the system. Once you receive your Chapter 7 discharge of all unsecured debt, freeing up that income may allow you to negotiate with your lender and keep your home.

Chapter 7 bankruptcy does not cure mortgage arrears and does not provide a repayment mechanism. It also offers no long-term protection if you are unable to resume your regular mortgage payments, and, in some cases, the lender can seek relief from the stay, and the court may agree to lift it. If you cannot afford your home and need time to move without deficiency judgments, and you have little or no equity in your home, Chapter 7 bankruptcy could be your best choice.

How Can Chapter 13 Bankruptcy Save Your Home from Foreclosure?

If you file Chapter 13 bankruptcy, you will have the same automatic stay as Chapter 7, immediately halting foreclosure proceedings. The Chapter 13 repayment plan can allow you to catch up on your mortgage arrears over three to five years. As long as the plan payments are made and ongoing mortgage payments are maintained, then Chapter 13 can often prevent foreclosure by resolving:

• Missed payments
• Escrow shortages
• Late fees
• Penalties

The mortgage payments must be made through the Maryland Chapter 13 trustee, and the lender must accept the plan if it satisfies the Bankruptcy Code requirements. Chapter 13 may be the best option to prevent foreclosure if you have significant equity in your home that is worth protecting, along with regular income and the ability to resume monthly mortgage payments.  Even if the foreclosure sale is imminent, there is a good chance you can keep your home through Chapter 13 bankruptcy.

Contact a Bowie, MD Chapter 13 Bankruptcy Lawyer

If you are facing foreclosure in Maryland, you may have more options than you think. Your income, equity in your home, and long-term goals will help you determine whether Chapter 7 or Chapter 13 bankruptcy is right for you.

A knowledgeable Charles County, MD Chapter 7 bankruptcy attorney from Bloc One Services, LLC can quickly evaluate your situation and advise you on whether Chapter 7, Chapter 13, or another form of relief offers the strongest protection. Attorney Blocton provides the local community with quality legal services at a reasonable price. "Rebuild Your Future With Hope." Call 240-200-0076 to schedule your free initial 30-minute consultation.