Real Estate Glossary

Bankruptcy stay

/glossary/automatic-stay-bankruptcy
When a homeowner files Chapter 7 or Chapter 13 bankruptcy, an 'automatic stay' instantly halts all collection actions — including foreclosure. The stay typically lasts until the bankruptcy is resolved (3-6 months for Chapter 7, up to 5 years for Chapter 13).

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Reviewed by John Quigley · Founder, BuyHousesInCash · Last updated May 2026

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