Introduction: When You’re Behind on the Mortgage
Falling behind on mortgage payments is stressful and frightening. In Minnesota, missing just a few payments can lead to foreclosure proceedings, sheriff’s sales, and the very real risk of losing your home. For many families, this isn’t about bad spending habits — it’s about job loss, medical bills, or unexpected expenses that made it impossible to keep up.
The good news: Chapter 13 bankruptcy in Minnesota can stop foreclosure immediately and give you the time to catch up. With a structured repayment plan, you can save your home, reorganize debt, and move forward with a realistic plan for the future.
How Foreclosure Works in Minnesota
Understanding the process helps you see why timing matters. In Minnesota:
Foreclosure by advertisement is most common. The lender publishes notice and schedules a sheriff’s sale.
Foreclosure by action involves a court process, but is less common.
After the sheriff’s sale, there is a redemption period (often six months) during which you can pay the full balance to keep your home.
Once foreclosure starts, it moves quickly. Without intervention, you could lose your home in a matter of months.
How Chapter 13 Bankruptcy Stops Foreclosure
When you file Chapter 13, the court issues an automatic stay that immediately halts foreclosure proceedings — including sheriff’s sales. This means:
No more foreclosure notices.
No sheriff’s sale.
No lender harassment.
You don’t lose your home when you file. Instead, you gain breathing room to catch up on arrears over 3–5 years through your repayment plan.
Catching Up on Missed Payments
The power of Chapter 13 lies in its repayment structure:
Arrears are spread out over 36–60 months.
Ongoing payments resume right away, so you stay current moving forward.
At the end of the plan, you’re fully caught up and your mortgage is current.
Example: If you’re $12,000 behind on your mortgage, Chapter 13 lets you repay that over 60 months — about $200 per month — while keeping up with your normal payments.
Other Benefits of Chapter 13 for Homeowners
Second mortgages or liens: In some cases, junior liens can be stripped if the home’s value is less than the first mortgage.
Manage other debts: Credit cards, medical bills, and payday loans are folded into the plan, often at pennies on the dollar.
Why Loan Modifications Often Fall Short
Some homeowners try loan modifications first, but results can be disappointing:
Lenders may drag out the process.
Modifications may not be approved.
Even if approved, payments may still be unaffordable.
Chapter 13 doesn’t rely on lender cooperation. It’s a court-ordered plan that forces creditors to accept structured repayment.
Chapter 13 vs. Chapter 7 for Homeowners
Chapter 7: Wipes out unsecured debt, but doesn’t let you catch up on mortgage arrears. If you’re behind, you still risk foreclosure.
Chapter 13: Designed for saving homes. It buys time and gives you a clear roadmap to keep your house.
For Minnesota homeowners behind on their mortgage, Chapter 13 is usually the better fit.
Common Myths About Bankruptcy and Foreclosure
“I’ll automatically lose my home if I file.” – False. Chapter 13 is specifically designed to help you keep it.
“Bankruptcy ruins your chance to get credit again.” – False. Many families rebuild credit and borrow again in the future.
“Filing is giving up.” – False. Filing is about protecting what matters most.
A Realistic Example
“James and Maria,” a couple in St. Paul, fell six months behind on their mortgage after medical bills drained their savings. Their lender scheduled a sheriff’s sale.
By filing Chapter 13 bankruptcy:
The foreclosure stopped immediately.
Their $9,000 in arrears was spread over 5 years — $150/month.
They kept their home and began rebuilding stability.
Conclusion: Chapter 13 Can Save Your Home
If you’re behind on mortgage payments in Minnesota, don’t wait for the sheriff’s sale. Chapter 13 bankruptcy can stop foreclosure, spread out arrears, and give you a path to keep your home.
In Minnesota and ready to talk about stopping a foreclosure with bankruptcy?
Schedule a free consult with bankruptcy lawyer Todd Murray.
Since 2009, Todd has helped hundreds of Minnesotans get out of debt. His work has saved his clients millions of dollars (and many sleepless nights) in the process. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.