Catching Up on Mortgage Arrears and Keeping Your Home in Georgia
You missed a mortgage payment. Then another. Maybe it was a job loss, a medical bill, a divorce, or the kind of slow financial slide that started years ago and finally caught up with you. At some point a letter arrived, then another, and now you are looking at a foreclosure notice and wondering whether you are out of options.
You are not. If you own a home in Columbus, Georgia and you are behind on your mortgage, Chapter 13 bankruptcy is one of the most powerful legal tools available to stop foreclosure and give you a structured path to catch up on what you owe. It does not erase your mortgage debt or eliminate your obligation to make future payments. What it does is stop the foreclosure process the moment the petition is filed, protect your home while the case is active, and allow you to repay the past due balance over three to five years through a court approved plan while making your regular monthly payments going forward.
Chapter 7 bankruptcy does not do this. Chapter 7 triggers the same automatic stay that halts foreclosure proceedings temporarily, but it does not cure arrears. Once the Chapter 7 case closes and the stay lifts, the lender can resume exactly where it left off. Chapter 13 is different because it gives you the tools and the time to actually resolve the arrearage rather than simply delay the outcome.
People who call our Columbus office about foreclosure are often surprised by how quickly Chapter 13 can act. Filing the petition creates an immediate legal barrier between you and the foreclosure. The lender cannot proceed with the sale. Collection calls must stop. From that moment, the focus shifts from losing your home to keeping it.
This page covers how the automatic stay works, how the arrearage gets cured through the plan, what the timeline looks like from filing through discharge, and what you need to do after filing to make sure the protection holds. If your foreclosure sale date is approaching, do not wait to read this page and then decide whether to call. Every day matters.
Key Takeaways
- Filing Chapter 13 triggers an automatic stay that stops foreclosure proceedings immediately, including a scheduled trustee’s sale, the day the petition is filed with the court.
- The automatic stay is a federal court order, not a request. Lenders are legally prohibited from taking any action to collect on the mortgage or proceed with foreclosure while the stay is in effect.
- Mortgage arrears, meaning the past due balance you owe on your home loan, are included in your Chapter 13 repayment plan and paid off over three to five years while you resume regular monthly payments.
- Chapter 7 creates a temporary automatic stay, but it cannot cure mortgage arrears. Only Chapter 13 provides the mechanism to bring a delinquent mortgage current over time while keeping the home.
- To keep the protection, you must make your plan payments on time and keep your regular mortgage payments current throughout the plan period. Missing either puts the home at risk again.
The Automatic Stay and What It Does
What the Automatic Stay Is
The automatic stay is a provision of federal bankruptcy law that takes effect the instant a bankruptcy petition is filed. It requires every creditor, including mortgage lenders, collection agencies, judgment creditors, and taxing authorities, to immediately stop all collection activity. For a homeowner facing foreclosure, this means the lender cannot proceed with the foreclosure process, schedule or conduct a trustee’s sale, send collection notices, or take any other action to enforce the debt against the property while the stay is active.
The stay is not something your attorney has to request or argue for at a hearing. It is automatic and immediate. The court sends notice to all listed creditors after filing, but the legal effect begins the moment the petition hits the court’s docket. If your foreclosure sale is scheduled for tomorrow morning and you file Chapter 13 tonight, the sale cannot lawfully proceed.
What the Automatic Stay Covers
In a foreclosure context, the automatic stay stops all of the following from the moment of filing. No trustee’s sale can be conducted. No foreclosure complaint can be served or pursued in state court. No deficiency judgment proceedings can continue. No demands for payment can be made. No wage garnishments can continue. The lender is frozen in place, and you have time to work through the plan process.
The stay covers more than just the mortgage lender. It protects you from all creditors at the same time. Car lenders cannot repossess. Credit card companies cannot sue or garnish. The IRS cannot levy your wages or bank accounts. From the moment of filing, the legal pressure from every creditor stops while you reorganize through the Chapter 13 plan.
How Long the Automatic Stay Lasts
In a Chapter 13 case, the automatic stay remains in effect throughout the entire plan period as long as the case is active and in good standing. A plan period runs three to five years depending on your income relative to the Georgia median. During those years, the stay continues to protect you from the mortgage lender as long as you are complying with the plan and keeping your regular mortgage payments current.
The stay can be lifted before the plan ends if a creditor files a motion for relief from the automatic stay and the court grants it. A mortgage lender will typically file such a motion if you fall behind on your regular ongoing mortgage payments during the plan, or if your plan payments to the trustee become delinquent. The court evaluates whether there is cause to lift the stay and whether the lender is adequately protected. Your attorney will oppose a relief from the stay motion on your behalf. The best protection against such a motion is staying current on both obligations from the day you file.
Prior Bankruptcy Filings and the Stay
If you have had a bankruptcy case dismissed within the 180 days before your new filing, the automatic stay in the new case may be limited to 30 days or may not apply at all. A second filing within one year requires a court motion to extend the stay beyond 30 days. Two or more dismissals in the prior year can create a presumption of no stay unless you obtain a court order extending it. Your attorney will identify this risk during the pre-filing review and advise on the necessary motions.
How Chapter 13 Catches Up Your Mortgage Arrears
What Arrears Are and Why They Matter
Mortgage arrears are the total past due amount you owe on your home loan. This includes all missed principal and interest payments, any late fees the lender has assessed, attorney fees the lender has incurred in the foreclosure process, escrow shortfalls for taxes and insurance, and any other charges that have accrued on the account. The arrearage figure at the time of filing is often significantly larger than people expect because lender fees and foreclosure costs accumulate quickly once a loan goes into default.
Your attorney will request a payoff statement from the lender before filing to establish the exact arrearage amount. That figure becomes a line item in your Chapter 13 plan and must be paid in full over the plan period. Mortgage arrears are a secured debt. Unlike general unsecured debts like credit cards, which often receive only a fraction of what is owed, the arrearage must be paid completely.
How the Arrearage Is Paid Through the Plan
Once your Chapter 13 plan is filed and ultimately confirmed by the court, the mortgage arrearage is divided into equal monthly installments spread across the plan period. Those installments are included in your monthly payment to Standing Trustee Jonathan W. DeLoach. The trustee collects your plan payment, deducts the trustee’s administrative fee, and distributes the arrearage installments to your mortgage lender on a regular disbursement schedule.
This is a critical distinction many people miss. During Chapter 13 you are making two separate mortgage related payments. The first is your regular ongoing monthly mortgage payment, which you continue to pay directly to your lender outside the plan. The second is the arrearage installment, which flows to the lender through the trustee as part of your plan payment. Both must be maintained. Missing either puts the home at risk.
What Happens to the Mortgage Balance Itself
Chapter 13 cures the arrearage and brings your loan current. It does not reduce or modify the principal balance of your primary home mortgage, nor does it change the interest rate or loan terms. This is known as the anti modification rule for residential mortgages, and it applies specifically to loans secured by your primary residence. Your mortgage after Chapter 13 is the same loan with the same terms, just brought current. If you want to address the mortgage balance directly through bankruptcy, lien stripping on a wholly unsecured second mortgage or home equity line is the available tool, but that is a separate analysis from curing the first mortgage arrearage.
How lien stripping works and when it applies is covered in detail on our How Chapter 13 Repayment Plans Work in Columbus, GA page.
Timeline for Stopping Foreclosure with Chapter 13
The table below shows the key milestones from the day you file through the end of the plan, with approximate timing for cases filed in the Columbus Division of the Middle District of Georgia.
| Milestone | Timing | What Happens |
|---|---|---|
| Petition filed | Day 1 | Automatic stay takes effect immediately. Foreclosure proceedings, trustee’s sale, and all collection activity must stop by law. |
| First plan payment due | Within 30 days of filing | Payment goes to Trustee DeLoach. Most payments are made via payroll deduction. Direct payment required until wage order begins. |
| 341 Meeting of Creditors | 20 to 40 days after filing | Held by video. Trustee asks questions about finances and the proposed plan. Attendance required. |
| Confirmation hearing | About 1 month after 341 Meeting | Court reviews and approves the plan. Trustee and creditors may raise objections. Most uncontested cases are confirmed at this hearing. |
| Arrearage payments begin | After plan confirmation | Trustee disburses arrearage installments to lender on a regular disbursement schedule throughout the plan period. |
| Plan period | 3 to 5 years | Ongoing monthly payments to the trustee. Regular mortgage payments directly to the lender. Automatic stay continues throughout. |
| Plan completion | End of plan period | All arrearage paid. Mortgage brought fully current. Eligible remaining unsecured debt may be discharged. Case closed. |
Timing is approximate and reflects typical cases in the Columbus Division. Individual cases may vary depending on complexity, creditor objections, and court scheduling.
What Happens After You File
Your Obligations from Day One
Filing Chapter 13 stops the foreclosure. Keeping the home through the end of the plan requires meeting your obligations consistently for three to five years. There are two financial obligations that must both be satisfied every month. You must make your regular ongoing mortgage payment directly to your lender, the same payment you would make if you were not in bankruptcy. And you must make your Chapter 13 plan payment to Trustee DeLoach, which includes the arrearage installment along with payments to your other creditors.
If your income comes from regular employment, the plan payment will typically be deducted automatically from your paycheck through a wage order served on your employer shortly after filing. Until the wage deduction begins, you are responsible for making payments to the trustee by money order, cashier’s check, or through the ePay online system. Payments begin within 30 days of filing, before the plan is confirmed.
Maintaining Insurance
One condition of keeping your home through Chapter 13 is maintaining adequate homeowner’s insurance throughout the plan period with your mortgage lender listed as loss payee. The trustee’s office will verify insurance status. A lapse in coverage gives the lender grounds to seek relief from the automatic stay and can result in the lender force placing insurance at your expense, adding costs to your loan balance.
If the Lender Files a Motion for Relief from Stay
If you fall behind on regular mortgage payments or plan payments, your lender may file a motion for relief from the automatic stay asking the court to permit the foreclosure to resume. This is serious but not necessarily fatal. The court schedules a hearing, and your attorney has the opportunity to oppose it. If the arrearage within the case is modest and you can demonstrate the ability to cure it, the court may deny the motion or condition relief on catching up within a specific timeframe. Contact your attorney the moment you realize you cannot make a payment rather than letting the delinquency grow.
Completing the Plan and Keeping Your Home
When you successfully complete your Chapter 13 plan, your mortgage is brought fully current. The arrearage has been paid in full through the plan. Your regular ongoing payments during the plan period have kept the current balance from growing. At discharge, you own your home, your mortgage is current, and the bankruptcy case is closed.
For a complete step by step walkthrough of every milestone in a Chapter 13 case from filing through discharge, see our Chapter 13 Bankruptcy Timeline and Process in Columbus, GA page.
Frequently Asked Questions About Stopping Foreclosure with Chapter 13
Q. How quickly does Chapter 13 stop a foreclosure?
A. The automatic stay takes effect the instant the Chapter 13 petition is filed with the bankruptcy court. There is no waiting period and no hearing required. If a foreclosure sale is scheduled and the petition is filed before the sale occurs, the sale cannot proceed. Lenders are legally required to halt all foreclosure activity from the moment of filing. Your attorney will notify the lender and any foreclosure counsel of the filing immediately after the petition is submitted.
Q. Can Chapter 13 stop a foreclosure sale that is scheduled for tomorrow?
A. Yes, as long as the petition is filed before the sale takes place. The automatic stay is immediate and applies to scheduled sales. If the sale has already been completed before the petition is filed, bankruptcy cannot undo the completed sale in most circumstances. Timing is critical. If you are facing an imminent sale date, contact an attorney immediately. Filing even a day before the sale date can stop it.
Q. Does Chapter 13 eliminate my mortgage debt?
A. No. Chapter 13 does not reduce or eliminate the principal balance of your primary home mortgage. It allows you to cure the past due arrearage over the plan period and bring the loan current, but the mortgage itself continues under its original terms. You will still owe the remaining balance on your loan after the plan is completed. What Chapter 13 eliminates is the foreclosure threat by making you current on the loan.
Q. What if I cannot afford both my regular mortgage payment and the plan payment?
A. This is the central feasibility question your attorney will work through before filing. The Chapter 13 plan must be affordable based on your actual income and expenses. If your income is not sufficient to cover both your ongoing mortgage and the plan payment that includes the arrearage, the plan may not be confirmable as proposed. Your attorney will assess this during the pre-filing analysis. In some situations, reducing other debt obligations through the plan frees up enough income to make the combined payment workable.
Q. Can the lender still contact me after I file Chapter 13?
A. No. The automatic stay prohibits all collection communications from the lender from the moment of filing. This includes phone calls, letters, notices of default, and any other attempt to collect on the mortgage debt outside of the bankruptcy case. If a lender continues contact after receiving notice of the bankruptcy filing, that is a violation of the automatic stay and can result in sanctions against the lender. Report any post filing contact to your attorney immediately.
Q. What happens if I miss a plan payment during my Chapter 13 case?
A. Missing a plan payment triggers a risk of dismissal. The trustee monitors payment compliance closely and will file a motion to dismiss if payments fall behind. A dismissed case ends the automatic stay, and the lender can immediately resume foreclosure proceedings. If a payment is going to be missed, contact your attorney before the due date rather than after. In many cases, the plan can be modified to address a temporary income disruption before the trustee moves to dismiss.
A full explanation of what happens when payments are missed and what options are available is on our What Happens If You Miss Chapter 13 Payments in Georgia page.
Q. Does my spouse have to file Chapter 13 with me to save the house?
A. No. A married couple has the right to file jointly but is not required to. In many situations, only one spouse files while the other does not. Whether filing jointly makes sense depends on how the mortgage is structured, which spouse is primarily liable on the loan, what other debts are involved, and each spouse’s individual credit situation. At Arey and Cross, P.C., we look at the full picture during the consultation and recommend the filing approach that best protects both your home and your long term goals.
Q. Can Chapter 13 help if I have a second mortgage or home equity line in addition to the first?
A. Yes, and in some cases it can do more than just cure the arrearage on the first mortgage. If the value of your home is at or below the balance owed on your first mortgage, the second mortgage or home equity line may be wholly unsecured. In that situation, Chapter 13 allows the lien to be stripped from the property entirely through the plan. The stripped lien is reclassified as unsecured debt and typically receives only a fraction of its face value. Upon plan completion, the lien is permanently removed from your title. This tool is only available in Chapter 13.
Q. How do I know if I qualify for Chapter 13 to save my home?
A. The primary requirements are that you have regular income sufficient to fund a plan covering both your ongoing mortgage and the arrearage installments, and that your total debt falls within the Chapter 13 limits of $526,700 in unsecured debt and $1,580,125 in secured debt as of April 2025. The eligibility analysis also looks at prior bankruptcy history and tax filing status. The best way to know whether you qualify is to sit down with an attorney and run the actual numbers during a free initial consultation.
The full eligibility requirements for Chapter 13 are covered on our Who Qualifies for Chapter 13 Bankruptcy in Georgia page.
Your Home Is Worth Fighting For
If you are behind on your mortgage and a foreclosure notice has arrived, the worst thing you can do is wait. The automatic stay that stops the foreclosure process only works if your case is filed in time. Once a sale is completed, the legal options narrow significantly. The window between receiving a foreclosure notice and losing the ability to stop it is often shorter than people realize.
At Arey and Cross, P.C., we have helped Columbus, Georgia homeowners use Chapter 13 to stop foreclosure and save their homes. We focus on building plans that are realistic for you and acceptable to the court so you are not set up for failure over the three to five year plan period.
The consultation is free. We will look at your mortgage balance, your arrearage, your income, and your other debts, and tell you plainly whether Chapter 13 can protect your home and what the plan would require of you. If it can work, we move forward. If something does not add up, we tell you that and talk through what other options exist. No one leaves the consultation without a clear picture of where they stand.
If your sale date is close, call us today. Do not wait until tomorrow. Every day that passes before filing is a day the foreclosure process continues.
To understand how the repayment plan works and how your monthly payment would be calculated, see our How Chapter 13 Repayment Plans Work in Columbus, GA page.
To compare Chapter 13 against Chapter 7 and understand why only Chapter 13 can cure mortgage arrears, see our Chapter 7 vs. Chapter 13 Comparison page.
For a full overview of how Chapter 13 works from first filing through discharge, visit our Chapter 13 Bankruptcy in Columbus, GA overview page.
Call 706 200 5552 or come to 4800 Armour Road, Suite A, Columbus, GA 31904. The consultation is free and the sooner you call, the more options you have.