Q: After I filed chapter 13 to stop my pending foreclosure sale the lender postponed the sale. Shouldn't it be cancelled?

A: Typically, lenders postpone sales, often repeatedly, while someone in in bankruptcy. That way, if the case is dismissed, or if the Court grants them relief from stay to proceed with the foreclosure, they don't have to start the process over again. The best way to prevent the lender from taking any further actions is to make all your plan payments on time.

A: It’s six of one and half dozen of the other. They cannot proceed until or unless the Court terminates the stay.

A: When you file for Chapter 13 bankruptcy, an automatic stay goes into effect. This stay temporarily halts collection efforts, including foreclosure proceedings, so the lender must stop the sale. Postponing the foreclosure is often a temporary measure the lender may take while reviewing your bankruptcy filing.

However, postponing the sale doesn’t automatically cancel it. The lender could still proceed with the sale later if the bankruptcy plan doesn’t address the debt. You will need to work with the court to ensure your repayment plan is accepted and that you're meeting its requirements.

If the lender intends to proceed with foreclosure despite your filing, you can challenge the sale in court. The court will review the specifics of your case, including whether your Chapter 13 plan can successfully resolve the debt and protect your home. Be sure to stay in touch with your attorney to navigate this process properly.