Facing foreclosure can be one of the most stressful experiences for any homeowner. In Alabama, where the foreclosure process is typically non-judicial and can move quickly, homeowners often feel like they are running out of time and options. However, one possible solution that can offer immediate relief is filing for bankruptcy.

Understanding Foreclosure in Alabama

Alabama is a “non-judicial foreclosure” state, which means lenders are not required to go through the court system to repossess a home. Once a borrower defaults on a mortgage, the lender can issue a notice and proceed with the sale of the home after a short waiting period. This swift process can leave homeowners with little time to react.

How Bankruptcy Can Stop Foreclosure

Filing for bankruptcy triggers an automatic stay, a powerful legal provision that immediately halts most collection actions, including foreclosure proceedings. The type of bankruptcy you file determines how long and how effectively you can protect your home.

Chapter 7 Bankruptcy

Chapter 7 may temporarily delay foreclosure, but it does not provide a long-term solution for catching up on missed mortgage payments. It can buy time—often just enough to explore other legal or financial options—but the lender can petition the court to lift the automatic stay.

Chapter 13 Bankruptcy



Chapter 13 is often a more strategic option for homeowners trying to stop foreclosure. This type of bankruptcy allows you to restructure your debts and create a repayment plan that spans 3 to 5 years. During that time, you can catch up on missed mortgage payments while continuing to make your regular monthly payments.

Benefits of Bankruptcy in Foreclosure Situations

• Immediate Relief: The automatic stay can provide breathing room by halting foreclosure proceedings instantly.
• Debt Reorganization: Chapter 13 allows for manageable monthly payments that include mortgage arrears.
• Asset Protection: Bankruptcy may help preserve other valuable assets from liquidation or seizure.
• Fresh Start: Both bankruptcy chapters can eliminate or reduce unsecured debts, allowing homeowners to focus on saving their home.

How Backus Law Group Can Help

At Backus Law Group, we are committed to helping Alabama residents understand their legal rights and options during financial distress. Whether you are exploring Chapter 7 or Chapter 13 bankruptcy, our legal team can help determine the best course of action to help you avoid foreclosure and regain financial control.