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Web in a nutshell filing for bankruptcy can help homeowners to prevent foreclosure. Web by stretching out repayment over several years, chapter 13 bankruptcy can make debt more manageable and allow filers the opportunity to save valuable. Most of the time, filing for chapter 13 bankruptcy is most effective. Web in a nutshell filing for bankruptcy can help homeowners to prevent foreclosure. Web chapter 13 offers individuals a number of advantages over liquidation under chapter 7. If you received a foreclosure notice from your bank, you might still be able to save your home by filing for chapter 13 bankruptcy—as long as you can meet the. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their. Web if you are in foreclosure when you file for chapter 13, bankruptcy's automatic stay—the order that stops most creditors in their tracks—puts a hold on the foreclosure.